After speculation and varying press reports, both the U.S. and China have confirmed U.S. List 4B tariffs set to go into effect Sunday will be canceled, and List 4A tariffs implemented this past September will be cut in half to 7.5% from 15%. Section 301 tariffs on Lists 1-3 will remain at 25% until further notice.
It is being reported that the agreement comes after China agreed to structural changes and to make certain agricultural and energy purchases with enforceability provisions.
No details are available yet on the scale of agricultural purchases, but the agreement is being reported as addressing: agriculture, intellectual property protection, technology transfers, and the liberalization of China's financial sector. The agreement is reported as having a "snapback" provision that would restore tariffs if China does not comply.
Both parties acknowledged the deal would need to go through "legal procedures" before signature. But for now, List 4B tariffs threatened to go into effect this Sunday are canceled.
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