The United States Trade Representative's (USTR) Office confirmed in a statement that they have reached a phase-one trade deal with China and noted that the US has agreed to modify its tariffs in a "significant way," as reported by Reuters.
Despite the initial positive market reaction to this development, the 10-year US Treasury bond yield reversed its direction and was last down 2.5% on the day. Additionally, after reaching their fresh all-time highs, Wall Street's main indexes erased their gains. As of writing, both the Dow Jones Industrial Average and the S&P 500 were in the negative territory while the Nasdaq Composite was up 0.3%. Below are some key takeaways from the USTR's statement.
"US-China phase one trade deal requires structural reforms to China's economic and trade regime."
"US-China trade deal covers areas of IP, tech transfer, agriculture, financial services, currency and foreign exchange."
"China agreed to substantial additional purchases of US goods and services in coming years."
"US-China deal includes strong dispute resolution system."
"US will maintain 25% tariffs on about $250 billion of Chinese imports, along with 7.5% tariffs on about $120 billion of other Chinese imports."
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