China has recorded a partial victory along with the United States of America in discharging trade war, after the embattles Donald Trump administration in principle agreed for freezing brand new tariffs against goods of China that worth of $250 billion.
Therefore, in return, Beijing would purchase around $40 to $50 billion worth of the United States farm products including soybeans and pork among others. The huge quantum of Chinese purchase of farm products is beneficial for US farmers, claimed by the president Donald Trump.
For the last 18 months, the American farmers are particularly restive with the trade dispute against China because it had resulted in large losses. The administration of the United States was forced to offer trade-distorting farm subsidies in order to the tune of $12 billion to its farmers due to the losses suffered in the Chinese industry.
USA president tweeted that, “The deal that we made with China is the greatest and biggest agreement ever generated for our great patriot farmers in the history of our national council.” He insisted the American farmers, that they would have to figure out new land for analyzing the Chinese purchases that have decreased from $21 billion in 2017 because of the trade war.
However, China has not publicly confirmed about the huge purchase of US farm products, but not other aspects of the understanding gathered on intellectual properties as well as currency management with the United States.
Reportedly, the administration of the United States will retain the existing additional tariffs it had imposed on the goods of China. According to the president Donald Trump, a bigger trade deal with China will observe in three stages over the next several months. The principle deal is mainly about the immediate purchase of US goods and shelving tariffs on Chinese goods.