U.S. & China Close to “Phase One” Trade Deal

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U.S. & China Close to “Phase One” Trade Deal

U.S. & China Close to “Phase One” Trade Deal


On Friday, October 11, trade negotiators from the United State and China agreed to a “phase one” trade deal that is expected to take between three to five weeks to finalize.

As part of the deal, China has agreed to purchase more U.S. agricultural commodities, make reforms to intellectual property measures and financial services. The United States has agreed not to increase tariffs from 25 percent to 30 percent on October 15. There has been no decision made on the tariff increase scheduled for December 15.

The China Daily, a state-owned publication, wrote that, “While negotiations do appear to have produced a fundamental understanding on the key issues and the broader benefits of friendly relations, the Champagne should probably be kept on ice, at least until the two presidents put pen to paper.”

On Sunday, President Trump tweeted, “My deal with China is that they will IMMEDIATELY start buying very large quantities of our Agricultural Product, not wait until the deal is signed over the next 3 or 4 weeks.” On Monday, October 14, customs data released by Beijing showed that exports to the U.S. fell 17.8 percent to $36.5 billion in September. The U.S. is the largest buyer of Chinese products.

U.S. Prepares to Impose Sanctions on Turkey

The Trump administration is preparing to impose economic sanctions on Turkey, as early as this week, for its decision to launch military operations this week against U.S.-allied Kurdish forces in Syria.

Treasury Secretary Steven Mnuchin said the U.S. was “ready to go at a moment’s notice to put on sanctions.” Mnuchin explained that the sanction “could be starting small, they could be maximum pressure, which would destroy the Turkish economy.” There is strong bipartisan support for sanction against Turkey.

On Friday, Mnuchin explained that sanctions could be triggered if Turkey undermined “the continued counterterrorism activities” of the Kurdish-led Syrian Democratic Forces or allowed “a single ISIS fighter to escape.”

We will continue to monitor this situation and let you know if any sanctions are imposed.If you have any additional questions, please reach out to your KRIEGER worldwide representative.

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