Trump’s China Trade Deal Details

Trump expects China to strike wider trade pact, says ‘they want it very badly’, Says tariffs will go up again if 90-day pause fails, but not to 145%.

President Trump said Monday that he expects China to “follow through” and agree to a full trade deal that opens its markets to U.S. producers during a negotiated pause in sky-high tariffs.

The president said tariffs on Chinese goods would rise again if negotiators cannot reach a favorable agreement during a 90-day pause in a trade war that both sides view as unsustainable.

Still, he said, “I think they’re going to follow through. I think they want it very badly.”

Wall Street breathed a sigh of relief after weekend negotiations between the U.S. and China in Switzerland. The talks resulted in an agreement to slash tariffs and pursue a broader deal that fosters trade between the world’s largest economies.

Stocks rallied on the news, with the Dow Jones Industrial Average surging 1,160 points, or 2.8%, the S&P 500 climbing 3.3% and the Nasdaq shooting up 4.3%.

Under the deal, China agreed to cut its tariff on U.S. goods from 125% to 10%, and the U.S. slashed its levy on China from 145% to 30%.

The U.S.-imposed levy is higher because of a previous 20% tariff that Mr. Trump put on Chinese goods because of the fentanyl crisis.

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