China,US close to reaching a trade deal

2 min read
  1. The United States and China are in the final stage of completing a trade deal.The deal would end the trade war between both the countries that has been escalating since last year.
  2. Trade war is a situation where countries restrict each other’s trade by imposing tariff or quota on imports.US had started imposing tariffs on as much as 25% on Chinese imports.China too responded with retaliatory tariffs of 25% on US goods including on soybean, automobiles, and marine products such as lobsters.
  3. The trade agreement under discussion will lead to(a)lower tariffs for American goods (b)ease restrictions on American goods such as on farms,automobile and chemical products (c)lower barriers that would allow American companies to operating from China and (d)Reduce trade gap as China will be buying more goods from US.
  4. In return for Chinese concessions, US will also remove all the trade sanctions which it had imposed on China since 2018