Saturday, October 12, 2019

Trump's Trade Deal

So The US and China have reached a Phase One trade deal. I view this as a "win-win" for President Trump and the United States.

The deal basically says China will purchase between $40-50 billion in US agricultural products and the US will not raise certain tariffs from 25% to 30% (a raise that was supposed to happen next week).

China buying billions in US agricultural products helps US farmers and in return all we gave up was not raising certain tariffs. A move that doesn't cost us anything.

I have to pat myself on the back because I called this over a week ago:
So look for China to offer to buy millions of tons of food from US farmers during the next round of trade negotiations as their "act of good faith" towards "finalizing" a deal or at least getting a break in tariffs.

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