WASHINGTON (Pakistan Point News / Sputnik - 13th December, 2019) China will purchase $50 billion worth of US agricultural goods as part of the phase one trade deal agreed to with the United States, US President Donald Trump said during remarks at the White House on Friday.
"The farmers are going to have to go out and buy much larger tractors because it means a lot of business, a tremendous amount of business," Trump said regarding the phase one trade agreement with China. "I think in agriculture they will hit $50 billion Dollars... pretty soon, they [China] have already stepped it up."
Trump said the 25 percent tariffs on $250 billion worth of Chinese goods will remain in place and will be used for future negotiations with China for the phase two deal,
Trump explained that China wants to immediately start negotiations for the phase two of the trade deal. The US president said his administration planned to start phase two of the trade deal after the 2020 US election, but now wants to conduct it much sooner.
As a result of the US-China phase one agreement being completed, the United States agreed to freeze additional tariffs that were planned to go into effect on December 15.
However, the Office of the US Trade Representative said in a press release on Friday that 7.5 percent tariffs on $120 billion worth of Chinese goods will also remain in place in addition to the 25 percent tariffs on $250 billion worth of Chinese goods.
The phase one trade deal requires structural reforms and other changes to China's economic trade regime in the areas of intellectual property, technology transfer, agriculture, financial services and Currency and foreign exchange.
