Trump announces US and China Phase 1 trade deal agreement

epa07914323 US President Donald J. Trump (C) delivers remarks to members of the news media during his meeting on trade negotiations with Vice Premier of China Liu He, between US Trade Representative Bob Lighthizer (L) and US Treasury Secretary Steven Mnuchin (R) in the Oval Office of the White House in Washington, DC, USA, 11 October 2019. Trump announced they 'have come to a very substantial phase one deal' as part of a multiphase trade deal while meeting with Liu on the second day of a new round of face-to-face trade negotiations between high level Chinese and American officials. The US agreed to hold off on increasing tarrifs set to begin 15 October and China has agreed to increase its purchase of US agricultural products. EPA-EFE/MICHAEL REYNOLDS

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Donald Trump announced that the U.S. and China have reached a Phase 1 trade deal, de-escalating a 17-month dispute between the economic powers.

According to AP. the U.S. is dropping plans to impose tariffs Sunday on $160 billion in Chinese imports and is reducing some existing tariffs on Chinese goods. In return, Trump said, the Chinese have agreed to “massive″ but unspecified purchases of American farm and manufactured products.

U.S. stocks rose to records earlier Thursday as optimism grew that there would be a deal. Trump tweeted that the U.S. and China are “VERY close” to signing a “BIG” trade deal, also sending equities higher.

“They want it, and so do we!” he tweeted five minutes after equity markets opened in New York, sending stocks to new records.

Via AP / Fortune

 

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