Phase one agreement begins today

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The phase one agreement between the United States and China takes effect today (2-15-2020). This agreement will officially put several key provisions of the deal into motion. 

The U.S. will cut tariffs on $120 billion of Chinese goods in half, with China reciprocating on tariffs that were put in place in September on $75 billion of U.S. goods. These goods include cars, crude oil and soybeans. 

 Within 10 days to 30 days, there are several requirements of the agreement that will affect dairy, poultry and beef. 

China could exercise any of the phase one loopholes due to extenuating circumstances and not purchase U.S. goods. The recent coronavirus outbreak would be an example of one of those loopholes.

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