A Narrow Deal Calms the U.S.-China Trade War, For Now

The United States and China moved Dec. 12 to soothe the sting of their trade war, agreeing in principle to a so-called "phase one" trade deal that would ease the reciprocal tariffs that have reverberated through the world economy for almost two years. One crucial aspect of the deal is an agreement by the United States to suspend additional tariffs set to take effect Dec. 15 and, crucially, reduce some of the tariffs already in place on some $360 billion in Chinese goods. And thanks to the deal, Washington and Beijing might finally have exited their tit-for-tat tariff escalations, although clouds remain on the horizon: After all, the scope of the phase one deal is narrow, and the two sides will struggle to agree to a more comprehensive deal -- portending perhaps even more disruptive battles in the tech supply chain in the year to come. ...