Just as the House Judiciary Committee voted to pass two articles of impeachment, Donald Trump and China both announced a breakthrough in the trade war. The US will waive upcoming tariffs expected to be applied on Sunday and roll back some of the existing tariffs in exchange for opening agricultural markets and other “structural changes.” This will be the first phase of a broader trade agreement to come, a confidence-builder that will also avoid more economic damage to both countries:
China and the U.S. have agreed on the text of a phase one trade deal, which will see the removal of tariffs on Chinese goods in stages, Vice Commerce Minister Wang Shouwen said.
China will increase imports from the U.S. as part of the agreement, Wang said at a briefing in Beijing Friday.
Just how much China will increase imports is an open question. Trump wanted a commitment to $50 billion in agricultural purchases, and China wanted a complete rollback of tariffs. Phase One appears to land somewhere in the middle of that: