The U.S. and China have taken the first steps in ending the current trade war, announcing a “Phase One” agreement that will “reduce some U.S. tariffs in exchange for increased Chinese purchases of American farm products and goods,” reports Reuters.

 According to the report, “Beijing has agreed to buy $32 billion in additional agricultural goods over the next two years, U.S. officials said, from a baseline of $24 billion purchased in 2017, before the trade war started. China would also ramp-up purchases of U.S. manufactured goods, energy, and services.

“The United States would suspend tariffs on Chinese goods due to go into effect on Sunday, and reduce others, officials said. A deal is expected to be signed the first week of January in Washington by principal negotiators.

Assn. of Equipment Manufacturers (AEM) president Dennis Slater issued the following statement after the Trump administration announced it would scale back U.S. tariffs on Chinese goods and avoid tariffs originally scheduled for Dec. 15 to take effect. 

“The announcement to scale back tariffs by the Trump administration is a good step in the right direction,” said Dennis Slater, president of AEM. “These tariffs have hurt equipment manufacturers, raised the costs of doing business and made it a lot harder for our industry to create more good-paying American jobs. The resulting trade war with China has also significantly hurt U.S. farmers and rural communities. With the 2020 election around the corner and with these tariffs increasingly wearing on the minds of American voters, we encourage the administration to continue negotiating with the Chinese government for the removal of all the remaining tariffs still in place.”

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