Michael Pillsbury an adviser to the president to the US President Donald trump said he spoke with Mr. Trump, who said the deal calls for China to buy $50 billion worth of agricultural goods in 2020 from the USA along with energy and other goods. In exchange the USA would reduce the tariff rate on many Chinese imports, which now ranges from 15% to 25%.
If China fails to make the above mentioned purchase the tariff would snap back to the original tariff rates. This so called phase one deal is a sign of goodwill gesture from the USA to improve the US-China relationship and bring stability to it thus ending the trade war between the world’s largest economies. Although a number of critics worry that the numbers in the phase one trade won’t work and have several shortcomings.