This is a major de-escalation in the trade war that President Trump has directed over the last 17 months.
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 Sunday.