Apple’s iPhones will avoid a new 10% or higher tariff as the US-China talks agree to a 90 day freeze on tariffs as the two side try to iron out a fair deal for both economic giants. The G20 meeting has already produced positive movement Beijing saying that the two sides agreed to open up their markets, according to a BBC report. That would produce a major breakthrough if it actually pans out in early 2019 if not a historic deal in terms of shear scope of issues.
The US says China agreed to “purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other products from the United States to reduce the trade imbalance between our two countries.”
More importantly, both sides have also pledged to “immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft”, the White House says.
This would be considered a major victory for the U.S. and particularly the Trump administration that has been the most aggressive administration in history in ensuring that America be treated fairly in any and every trade deal on the planet that safeguards and increases American jobs.
According to the US, China has also signaled it will allow a tie-up between two major semiconductor manufacturers which Chinese regulators have been blocking.
Chinese Foreign Minister Wang Yi told reporters after the talks that “the principal agreement has effectively prevented further expansion of economic friction between the two countries.”
He hailed “new space for win-win co-operation”, while Chinese state TV said negotiations would continue.
For more on this story read the full BBC report here and/or the Reuters report as a second source. The stock market should rally on this rather positive news tomorrow and Apple should get an uptick for escaping a new tariff.