Finally, we have reached Phase 1 in the US-China trade war. It seems like a long time to wait just to have CERTAIN products from China reduced from 15% to 7.5%. The items covered in this deal are the ones from List 4A, NOT any other list. The reduced duty rate will take effect on February 14th, as stated in the Federal Register. The deal also addresses topics such as currency manipulation, technology transfer, the protection of Intellectual Property and agricultural trade. The ink was not dry before people started asking about Phase 2 and there was no clear answer. Treasury Secretary Mnuchin hinted that phase 2 could turn into a Phase 2A, 2B, 2C so there is no real news to report regarding the next step. Unfortunately many believe Phase 2 is a long way off, maybe closer to the November elections. If you have any questions feel free to give me a call.