On Wednesday, January 15^th, the U.S. and China officially ratified Phase One of their planned trade deal.

The key component of Phase One involves China’s purchase of an additional $200 billion in American exports. At this time, it does not appear that the USTR has specified the exact purchases to be made, but has rather listed commodity-based purchase targets spanning various industries for 2020 and 2021.

In exchange, the U.S. has agreed to reduce Section 301 List 4A tariffs from 15% to 7.5% in exactly 30 days from today on February 14^th, 2020.

Phase One marks the commencement of a three-part trade deal that was proposed by President Trump on October 11^th, 2019.

The full copy of the official Phase One agreement can be found HERE.

Please click HERE to view the official USTR notice.

Shapiro will also continue to monitor and provide status updates on our Section 301 Tariff News page as they become available.