Amid an intensifying trade war with China, US President Donald Trump has signed a phase-one trade deal with the People’s Republic of China.
Besides signing the trade deal, the US President has also decided to wave off US tariffs on $160 billion worth of consumer goods entering the country from China. The tariffs were scheduled to go into effect on December 15, 2019.
Advisers also discussed the possible reductions of existing duties on Chinese products with the president.
According to the deal, China will increase the import of agricultural products from the US. Also, the deal requires China to commit and do more to stop intellectual-property theft. Both the US and China have also agreed to not manipulate their currencies.
Reportedly, the US has been working on the terms of the phase-one deal since Donald Trump announced in October that the two nations have reached an agreement.
However, the announcement of the deal was met with immediate criticism from Democrats and even by members of his own party.
Republican Senator Marco Rubio tweeted, “The deal would give away the tariff leverage needed for a broader agreement on the issues that matter the most such as subsidies to domestic firms, forced tech transfers and blocking US firms’ access to key sectors.”
According to the media, the deal could also see the 17-month long trade war between the US and China coming to an end.
President Donald Trump started the trade war in 2018 to force China to make changes to its trade practices which were resulting in trade deficit, theft on intellectual property and the forced transfer of American technology into China.