On Friday, President Trump reached an agreement with China to hold off raising the tariff on certain goods (including amplifiers) to 30 percent from the current 25 percent.
In exchange, China agreed to buy more farm products.
The agreement may imply that the planned tariff on even more Chinese goods, including speakers, might be averted. The Wall Street Journal wrote, “The implication is that if progress continues, Mr. Trump will cancel the tariffs planned for December on more Chinese goods.”
If the deal holds, the current tariffs enacted over the past 2 years will remain in place, so companies are expected to continue to shift their production away from China.
Under the deal, China agreed to purchase $40-$50 billion in farm goods annually (compared to the $24 billion worth it was buying prior to the trade war).
China will hold a session of its Central Committee in the next three weeks. The New York Times reported that Chinese President Xi Jinping will have to answer to that committee and “the possibility that the deal announced on Friday falls apart after the Center Committee meets remains a real one.”
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