Posted on 12/12/2019 4:17:44 PM PST by Hojczyk
Topline: President Donald Trump has signed off on a phase one trade deal with China, crucially avoiding a looming December 15 tariff deadline, after negotiators from both sides agreed upon terms earlier on Thursday, Bloomberg first reported.
The U.S. and China agreed upon terms for the so-called phase one deal, with Trump signing off on the deal later in the day, leading Wall Street investors to rejoice.
After months of drawn out negotiations to hammer out the terms of the phase one deal, first announced in October, the news sent the stock market surging to new records: The S&P 500 and Dow Jones Average were both up by around 0.80% on Thursday.
The deal reportedly includes promises by China to buy more U.S. farm goods, Bloomberg reported.
According to a report from the Wall Street Journal, U.S. negotiators have offered to slash existing tariffs, which cover roughly $360 billion of Chinese goods, by 50%.
The U.S. will also cancel the next round of China tariffs, planned to take effect on another $156 billion of Chinese goods on December 15, the report said.
Included in the deal is a promise made by China to do more to stop intellectual property theft, and both sides agreed to refrain from purposely manipulating their currencies.
(Excerpt) Read more at forbes.com ...
Another win for Trump.....if the Chinese do what there supposed todo
Big win for the farmers..
If they actually stick to not manipulating their currency, that’s humongous.
I’m not very enthusiastic about this deal. We will lower the tariffs we imposed in exchange for China PROMISING to abide by certain agreements.
We act, they promise. That’s essentially what I see here.
It all depends on them keeping their word.
All agreements are dependent on both parties doing what they say. What’s your point.
“It all depends on them keeping their word.”
Having done business in China for over 20 years, and having experienced the theft of intellectual property, the substitution of inferior materials, and the shifting of committed production capacity to my competitors with no notice I have very little believe the Chinese will keep their word on anything.
Forget the Chinese courts enforcing signed contracts or intellectual property rights. Of course you can also forget the US government assisting a US company being screwed over by the Chinese. As one trade representative told me, “You have to look at the BIG picture.”
Trump needed appearance of a deal and he got it. The Chinese will be back to business as usual tomorrow.
What a conundrum. What’s an anti-trade (not to be confused with fair-trade) Trump nut (used affectionally) supposed to do? Are the rabid anti-traders still around?
Trump has repeatedly said he wants trade. Trump is the ultimate Yankee trader. And guess what? making exports means taking imports.
This is a pretty big deal in my mind. Wow. What a week for President Trump.
sounds like Democrats (Chinese) and Republicans. George Bush vs. Tip O’Neil
My point is we’ve been on this road before with the Chicoms. They haven’t kept their promises.
I assume it’s a win for Trump.
But until we see it, can’t say.
Sure can’t believe media reports.
We’ll see.
If enforcement mechanism is strong ( say 30 days notice of complaint, then tariffs upped) it will be OK.
Gotta have enforcement with them.
Heck, we have to see what’s in it, period.
I too did business with the Chinese for sometime. I totally agree with your comments.
I like the Chinese people but the ChiComs are beyond any trust at all.
Too many promises. About as dependable as B.J. Clintons. How about a big check FIRST? Payment in advance. Then we provide the swine. I trust our farmers. POTUS is OUR leader and we must unite behind him WITHOUT the leftists out there. John Adams fought Jefferson every step of the way the it came to the Barbary pirates.
Doesn’t sound good in this article but I’ll wait to see what Trump says before passing judgement
Frustrating...
until we see it we can’t say this or the other!
I think Sundance nails it here. Trump has reorganized the world trade order with USMCA, the Japanese Trade Deal and the coming US/Great Britain deal. The Chinese don’t yet realize what’s happening to their global trading position.
“The U.S. will also cancel the next round of China tariffs, planned to take effect on another $156 billion of Chinese goods on December 15, the report said.
Included in the deal is a promise made by China to do more to stop intellectual property theft, and both sides agreed to refrain from purposely manipulating their currencies.”
Doesn’t sound like a very good deal to me. Tariffs were bringing in Hugh money, not hurting us (see jobs report) and hurting China.
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