President Trump on Friday announced the first phase of a new trade deal with China, signaling a possible end to the 17-month trade war between the world’s two largest economies.
“We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder,” the president tweeted, adding that new punitive tariffs that he had threatened to impose as early as Sunday were now off the table.
“The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal. We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!” he added in a second tweet.
US stocks hit fresh record levels on Friday after China said earlier that first phase trade talks with the US had achieved major progress and that Beijing would cancel retaliatory tariffs scheduled to take effect on Sunday.
The Trump administration and China said Thursday they were close to finalizing a modest trade agreement that would suspend tariffs that are set to kick in Sunday, de-escalating their 17-month trade war.
A “deal is close,” said Myron Brilliant, the US Chamber of Commerce’s head of international affairs, who has been briefed by both sides.
Brilliant said the administration has agreed to suspend Trump’s plans to impose tariffs on $160 billion in Chinese imports Sunday and to reduce existing tariffs, though it wasn’t clear by how much.
In return, Beijing would buy more US farm products, increase Americans companies’ access to the Chinese market and tighten protection for intellectual property rights.
With Post wires
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