On December 13, 2019, the United States and China announced a “phase one” trade agreement just before new tariffs were scheduled to go into effect.
Six days later, the House of Representatives passed the United States–Mexico–Canada Agreement (USMCA) in an overwhelming bipartisan vote, virtually assuring enactment of the long-awaited replacement to the North American Free Trade Agreement (NAFTA).
This week, Craig Siminski, of CMS Retirement Income Planning, shares an article that offers us a look at the U.S.-China “skinny” trade deal and the U.S.-Mexico-Canada Agreement, and their potential impact on consumers and the U.S. economy:
Both of these deals were expected to be enacted in early 2020, though details of the China pact remained unclear as of late December. The two agreements are important steps toward resolving conflicts with our three largest trading partners that had cast a pall over a generally strong U.S. economy.
While the USMCA had been on the table for more than a year, the China agreement is a wild card and more critical to addressing economic damage to U.S. manufacturing and agriculture. Leaders in both industries were cautiously optimistic, pending further details and proof that China would carry out its end of the deal.
U.S. and global stocks soared to record highs on December 12 when President Trump tweeted that a deal was “very close,” but the reaction was mixed when the agreement was officially announced the following day.
After an early surge, U.S. stocks lost their gains and closed flat for the day as investors reacted to the lack of details and …
Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 21 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.
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