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After months of trade tensions, the U.S. and China announced preliminary progress on a deal between the world’s two largest economies, reports CNBC.
The U.S. is poised to buy at least $16 billion more in agricultural goods from China in the next two years.
The article notes trade between the U.S. and China has fallen after both countries imposed tariffs on items entering their countries. In 2018, China ranked fifth among top destinations for U.S. agricultural imports.
The U.S. held off on raising planned tariffs on additional Chinese goods after this announcement, and China also refrained from imposing retaliatory tariffs in response.
The article states it is unclear when the U.S. will roll back other tariffs, which is a condition for the preliminary agreement between the U.S. and China. The Office of the U.S. Trade Representative said the U.S. will keep “25% tariffs on about $250 billion of Chinese imports, along with 7.5% duties on roughly $120 billion of Chinese imports.”
Earlier this year, original research from the North American Retail Hardware Association revealed 67 percent of surveyed retailers believe tariffs on foreign products entering the U.S. will have a negative effect on their businesses.
