Phase one of an initial trade deal between the U.S. and China has been signed by President Trump and Chinese leaders. The deal includes pledges from Beijing to more than double its purchases from American farmers in the first year. This agreement comes after nearly two years of negotiations and a punishing trade war between the world’s two largest economies.
Under the agreement, China has promised to buy an additional $12.5 billion in U.S. agricultural products in year one, and $19.5 billion worth in year two. Farm Bureau President Zippy Duvall says this agreement will help turn around two years of declining agricultural exports. President Trump believes this deal is a step in the right direction.
In addition to buying more farm products, the trade deal also includes the purchase of manufactured goods and energy exports. The deal will take effect in 30 days.