Unlikely US-China Phase 2 Trade Deal Will Come In the Next Year, Says Economist

Stability in Section 301 tariff levels is one piece of good news to come out of Friday’s announcement of a U.S.-China phase one trade deal, even if the large majority of imports will remain dutied at 25 percent indefinitely, Flexport chief economist Phil Levy told a webinar Monday. Recent history should be as a “precautionary tale” because many times in the past eight months, “a deal was announced, and it didn't last,” he said. Levy doesn't think a Phase Two deal that could include rolling back or eliminating more tariffs is likely in the next year.