New deal signals end to trade war

Posting on Twitter, US president Donald Trump said that China had agreed to a “Phase One Deal” to include structural changes and agricultural, energy and manufacturing purchases by China, in a move which seeks to bring an end to the trade war between the two countries.

Mr Trump said: “The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder…”

He added: “The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal. We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election.”

Impact on cargo

The trade war started in 2018 and has seen tariffs imposed on goods by both China and the US. The conflict has reportedly had a significant impact on Californian ports including Long Beach, which earlier this month reported cargo volume dropped 3.5% in November. Last month, the Port of Los Angeles reported that cargo movements in October dropped by nearly a fifth compared to the same period in 2018.

The Port of Oakland, which treated the announcement with caution, reported record cargo volume in 2018, despite the tariffs. However, its total cargo volume through the first 11 months of 2019 is down 0.8%.

Oakland’s executive director, Danny Wan, said: “We’re hopeful that this is the beginning of the end to damaging trade restrictions. It’s a good sign for our shipping customers, but let’s see how it plays out. There’ll be more work ahead to get global trade flowing freely again.”