US-China reach ‘substantial’ first phase of trade deal

US-China reach ‘substantial’ first phase of trade deal

The US has dropped plans to raise tariffs to 30 percent on $250 billion worth of Chinese goods now subject to a 25 percent levy. Photo credit: Shutterstock.com.

The United States and China have reached the first phase of a trade deal that could signal the end of a tariff war between the two powers that has lasted for more than a year and a half.

President Donald Trump on Friday said US and Chinese negotiators agreed to a “very substantial phase one deal,” adding it would take several weeks to write the agreement. Part of the deal involves China buying $40 billion to $50 billion worth of US agricultural products, according to the New York Times.

Trump announced the deal after meeting with Liu He, China’s vice premier.

Trump also said the US has dropped plans to raise tariffs to 30 percent on $250 billion worth of Chinese goods now subject to a 25 percent levy. No decision has been made on 15 percent tariffs on an additional $300 billion in imports from China, including footwear and apparel, due to take effect Dec. 15. 

Trump told reporters talks on a “phase two” trade deal would begin after phase one is finalized, according to news reports.