“The US and China have reached a “very substantial phase one” deal, US President Donald Trump has declared. Tariffs due to take effect on Tuesday have been canceled, and markets responded with elation.
Phase one of the deal includes intellectual property, financial services, and agricultural purchases, Trump announced on Friday during a meeting with Chinese vice premier Liu He in the Oval Office, adding that the actual agreement may take up to five weeks to write. Planned tariff increases from 25 to 30 percent on some $250 billion in Chinese goods due to take effect next week have been scrapped.
China has agreed to purchase $40-50 billion in agricultural goods, and the countries have reached an agreement on currency issues, Trump declared. Regarding transfer of technology – a particularly sore spot for Washington, which has repeatedly accused Beijing of stealing its intellectual property – the President said the parties had “made progress,” but that most of those issues would be worked out in phase two…”