BREAKING: Trump Signs Off On Massive Trade Agreement With China
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According to Bloomberg News, President Donald Trump has officially signed off on a huge trade agreement with China which will eliminate tariffs on December 15th.
"BREAKING: Trump has signed off on a trade agreement with China to avert tariffs set for Dec. 15, according to people familiar with the matter," Bloomberg tweeted.
The news came after President Donald Trump took to Twitter on Thursday morning to notify the American people that he was "VERY close" to making a "BIG DEAL" with China.
"Getting VERY close to a BIG DEAL with China. They want it, and so do we!" he tweeted.
The President's tweets immediately sent the stock market soaring. Check out what Forbes reported:
The stock market rallied to new all-time highs on Thursday after numerous reports and a tweet from President Donald Trump confirmed a phase one trade deal with China—crucially averting the looming December 15 tariff deadline.
- Both the S&P 500 and Dow Jones Industrial Average surged on the news, each rising over 1% in morning trading, with the former hitting a new record high.
- President Donald Trump signed off on the phase one trade deal with China, crucially avoiding a looming December 15 tariff deadline, after negotiators from both sides agreed upon terms earlier on Thursday, Bloomberg first reported.
- Trump tweeted this morning that the U.S. was “getting VERY close to a BIG DEAL with China” and that both sides want to work out an agreement.
- A report from the Wall Street Journal followed soon after, detailing how U.S. negotiators offered to slash existing tariffs, which cover roughly $360 billion of Chinese goods, by 50%.
- The U.S. will also cancel the tariffs planned to take effect on another $156 billion of Chinese goods on December 15, the report said, citing several unnamed sources briefed on the matter.
- In return, the U.S. pushed for China to commit to additional purchases of agricultural and other products, better protection of U.S. intellectual property rights and allowing greater access to China’s financial services sector, according to the Wall Street Journal.
- The trade deal with China comes just days after House Democrats finally agreed with the Trump White House to move forward with President Trump's trade deal with Canada and Mexico.
This deal has been in the making for over a year as Democrats have attempted to obstruct the President and his plans. The new deal will replace the North American Free Trade Agreement.
Check out what CNBS reported:
The Trump administration needs to submit ratifying legislation to Congress for the House to move forward with approving the agreement. Once the White House submits text — it could do so in the coming days — a 90-day window to approve USMCA starts.
The three countries are expected to sign the revised agreement Tuesday.
The deal as signed last year made a few key changes from NAFTA, which took effect in 1994. U.S. farmers got better access to the Canadian dairy market, rules of origin for auto parts became more strict, nearly half of automobile parts had to be produced by workers who make at least $16 an hour and digital trade and intellectual property rules were updated, among other provisions. Still, Democrats fought for measures they said would better prevent outsourcing of U.S. jobs to Mexico.
In a news conference Tuesday, Democrats highlighted the provisions they pushed to include in the revised USMCA. House Speaker Nancy Pelosi said the new agreement is “a victory for America’s workers and it’s one we take great pride in advancing.” House Ways and Means Committee Chairman Richard Neal, a Massachusetts Democrats who led his party’s talks with the Trump administration, called it a “triumph” for organized labor and “workers everywhere across America.”
The House could move to vote to ratify the bill before the end of the year, when a likely impeachment trial in the Senate and the 2020 election will take up more of Washington’s attention. The White House and business groups have pushed for ratification in 2019 in part because the lack of an agreement adds to the uncertainty farmers and other businesses face from the administration’s trade conflicts around the globe.
President Trump made sure to chime in, saying that things were "looking good," noting how the deal would greatly benefit farmers and manufacturers.
"America’s great USMCA Trade Bill is looking good. It will be the best and most important trade deal ever made by the USA. Good for everybody - Farmers, Manufacturers, Energy, Unions - tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!" he tweeted.
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