China and the US say they will halt imposing punitive import tariffs, putting a possible trade war "on hold". The deal was reached after talks in the US aimed at persuading China to buy $200 billion of US goods.
Both sides agreed that not imposing tariffs is a "win-win choice". The US has an annual $335 billion annual trade deficit with Beijing. Before elected, Trump had said that China was "raping" the US, and promised to label it a currency manipulator on his first day in office.
That did not happen, but the future is still unknown. For right now, we're in the safe zone. I'm glad someone realized that a trade war is the worst thing that could happen between these two large economies. They would literally fall to shreds without trading. Prices would sky rocket and US consumers would not be happy. Don't forget about the multiple businesses that would crumble.
This "America First" policy would only cause an economic catastrophe. If this deal holds I believe the US economy will hold. China buying more goods means that our deficit will shrink.
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