The US and China have announced the signing of a “phase-one” trade deal, an agreement which will involve China buying an extra US$40-50 billion of US agricultural products over the next two years. This signals there may finally be an end in sight to the series of retaliatory tariffs that the two countries have been placing on various imports from one another’s country over the past two years, with US agricultural products targeted and the balance of many of the world’s markets shifting. New sources have been found to fuel China’s growing demand for foreign fruits, meaning US apple, citrus and cherry producers in particular lost out. The California citrus industry has been hit by an additional 50% in tariffs since the dispute began.
All parties are remaining cautious for now while the terms of a new agreement remain uncertain and it is unclear exactly how China is going to purchase an extra US$40-50 billion of US products.