Chinese Checkers – What the G20’s big trade deal means to you
Bottom Line: The G20 started with a new trade deal signed off on by Canada and Mexico to replace NAFTA and ended with one of the most important trade developments we’ve ever seen. What actually happened with the Chinese trade talks? Here are a few major impacts...
- Tariffs on Chinese goods already hit with tariffs will remain at 10% - not rising to 25% in January as planned
- China has agreed not to target any US goods for additional tariffs
- China also agreed to import agricultural goods, energy and industrial products to narrow the trade gap between the two countries
- American companies will have more access to Chinese markets – Qualcomm was specifically cited
So, what’s that mean to you? First, it means that the world's two largest economies are more inclined to work with each other than they were prior to the weekend. That should help prevent anything that’d derail most of the economic progress we’ve made. For those in agriculture, manufacturing and energy businesses – it's great news that could provide immediate benefit. That could be especially good news for Florida’s agri-businesses. And for American companies looking to expand into China, there will theoretically be less red tape in doing so. It’ll be especially instructive to watch major technology companies like Google that'd been struggling with the Chinese government’s desire to only allow state-run censored versions of their products and services.
This is the mack daddy of trade deals. China’s trade is more significant than all European countries combined. More to come...