Trade Deal

Andrew Hutcheson

Last Wednesday, President Trump and Chinese Vice Premier Liu He met in Washington to discuss the first part of a trade deal. After a long, drawn out speech from President Trump, they came to the conclusion that Beijing will purchase an additional $200 billion in U.S. products. U.S. in response, will reduce tariffs on $120 billion in Chinese products from 7.5 % to 15%

Among the $200 billion China has agreed to purchase, a large majority of them are agricultural products. In the next two years, China will buy $32 billion dollars in agricultural products from the U.S. This massive increase in exports will cause much relief for soybean and pork farmers who were greatly affected by the trade war between the countries. Many of these farmers have been struggling to make money since the Chinese tariffs put in place in July 2018. Even though this phase of the trade deal has been very beneficial to the U.S, no one is sure what will be negotiated in the next meeting between the leaders of the two largest economies in the world.