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The US agrees to reduce its tariffs in exchange for more agricultural and energy purchases from China

The US agrees to reduce its tariffs in exchange for more agricultural and energy purchases from China

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The United States and China cooled their trade war on Friday, announcing a preliminary or “phase one” agreement that cuts some tariffs imposed by Washington in exchange for a Beijing increase in product purchases agricultural and other American goods.

Beijing agreed to acquire an additional $ 32 billion in agricultural goods over the next two years, US official sources said, from a $ 24 billion purchase base in 2017, before the start of the trade war. It will also increase purchases of manufactured goods, energy and services from the United States.

Washington will suspend tariffs on Chinese goods that went into effect on Sunday and reduce others, according to official sources. The agreement would be signed by the main negotiators the first week of January in Washington.

The president of the United States, Donald Trump, tweeted on Friday morning that “We have agreed on a great phase one pact with China.” The representatives of China “agreed on many structural changes and massive purchases of agricultural products, energy and manufactured goods, and much more,” he added.

During a press conference later at the White House, Trump said China would reach $ 50 billion in agricultural purchases.

At a press conference in Beijing, the Chinese authorities said the two countries made great progress in their negotiations and agreed to the text for a pact, but did not provide specific details on the amount of US goods that China agreed to buy.

CHINESE AGRICULTURAL PURCHASES

The United States had been pressuring China for $ 50 billion after Trump said during a press conference on October 11 that both countries had agreed on “phase one” of a trade agreement that included a “purchase from 40,000 (millions) to 50,000 million dollars of agricultural goods.”

Since then, Beijing has avoided committing to buying a specific amount of agricultural product goods for a certain period of time. The Chinese representatives said they would like the discretion to make the acquisitions based on market conditions.

China will import more wheat , corn and rice from the United States after the treaty, the Chinese vice minister of Agriculture said Friday, but did not give further details.

The United States agreed to suspend tariffs on Chinese products valued at just under $ 160 billion that would come into effect on December 15, Trump said, in addition to cutting other existing tariffs to 7.5%.

The agreement covers intellectual property, technology transfer, agriculture, financial services, currency and currencies, a statement from the US Trade Representative said early Friday.

The statement did not mention the tariffs of December 15, but said that Washington will maintain tariffs of 25% on Chinese goods valued at 250,000 million dollars, but cut in half, to 7.5%, other customs taxes applied to exports with worth 120,000 million dollars.

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