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UK economy 'shrinking' as factories and services companies struggle – business live


The US agreed to one of China’s key red lines, i.e. rolling back pre-existing tariffs. However, that reversal has been described as ‘minimal’ – 25% tariffs will be maintained on around $250 billion in goods, while only $120 billion will see the charges reduced to 7.5%.

As for Trump’s key demands, China will now reportedly purchase an extra $16 billion in agricultural goods per year, on top of the $24 billion already pencilled in, taking the total in 2020 and 2021 to at least $40 billion. The President himself said he thinks ‘they’ll hit $50 billion’, and that they’ve ‘already stepped it up’.

However these figures have been greeted with scepticism, if just because of how steep that increase would need to be on historical purchases. In total, including agricultural, manufactured and energy products, the deal would dictate China buys an additional $200 billion in American goods.

Another potential sticking point down the road could be the requirement for China to make ‘structural reforms and other changes to its economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange’ – a vast swathe of significant adjustments in exchange for a relatively minor reduction in tariffs.



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