U.S. and China reach “phase one” trade deal

Chinese wood products will continue to face 25% tariffs, according to a phase one trade agreement reached Friday between China and U.S.

According to a statement by the United States Trade Representative, some $250 billion in Chinese-made goods will continue to face tariffs of 25%. This third round of tariffs, also called List 3, includes about $200 billion in products, including furniture.

Also remaining at 25% are products on List 1, representing $34 billion in goods and products on List 2, which represents $16 billion in goods. Another $120 billion in goods will face 7.5% tariffs.

Plans to place 15% tariffs on another $156 billion in goods starting Sunday have been dropped. 

According to the USTR, the deal reached between both countries requires structural reforms and other changes to “China’s economic trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.”

It also includes a commitment that China will make “substantial additional purchases of U.S. goods and services in the coming years.”

List 1 – July 6, 2018 – $34 Billion (25%)

List 2 – Aug. 23, 2018 – $16 Billion (25%)

List 3 – Sept. 24, 2018 – , $200 Billion (10%). Increased to 25% on May 10, 2019; 

List 4A/4B – All remaining goods (15%). List 4A starts Sept. 1, 2019; List 4B starts Dec. 15, 2019

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