A Partial Trade Deal With China Mitigates One More Trump-Economy Risk

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A Partial Trade Deal With China Mitigates One More Trump-Economy Risk
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Mostly, Trump has announced that he will not do a new thing to make the economy worse

There’s a deal! Photo: Jim Watson/AFP/Getty Images The most important thing about the “phase one” trade agreement announced Friday by U.S. and Chinese officials is what won’t happen: The two countries won’t impose additional tariffs on Sunday that would have further escalated the trade war.

Ernie Tedeschi, a former Treasury Department economist now at the investment firm Evercore ISI, estimates this agreement will be good enough to increase U.S. GDP by 0.15 percent next year, compared to a scenario where we were unable to come to terms with the Chinese, and the tariffs scheduled for imposition this weekend had gone into effect.

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