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1/15, 9:47 PM (Source: TeleTrader)
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Deal says China can't retaliate with tariffs - US official

According to the phase one trade deal, China cannot respond to potential reimposed tariffs by Washington with its own tariffs on products from the United States, but it has the possibility of leaving the trade deal altogether if tariffs are reintroduced, an unnamed senior US official explained on Wednesday.

The agreement also foresees a dispute mechanism which is designed to resolve issues within around 90 days. Additionally, Beijing will have to issue "waivers or adjustments to meet purchase commitments" as the deal does not contain information on tariff reductions or eliminations, the official noted.

Earlier in the day, US President Donald Trump and Chinese Vice Premier Liu He signed the long-awaited phase one trade deal in which China agreed to purchase $200 billion more in US products compared to 2017.

Breaking the News / VP