On December 13, 2019, the Office of the US Trade Representative announced that United States and China have reached “an historic and enforceable agreement” on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.  The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of US goods and services in the coming years.  Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement.  Although all the details have not been released, the United States has agreed to modify its Section 301 tariff actions in a significant way. The United States will be maintaining 25 percent tariffs on approximately $250 billion of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion of Chinese imports. The 15% tariffs scheduled to be imposed on December 15 will be canceled. The products covered included toys, mobile phones and clothing. It is understood that China will also cancel its retaliatory tariffs scheduled for December 15.