The US and China finally cooled their trade conflict that has lasted for 16 months. The world’s two biggest economies agreed to ink a “phase one” trade deal that will Washington cutting some tariffs on goods imported from China. In exchange, China pledged to buy $32 billion in additional farm goods over the next two years. It would also increase purchases of US manufactured goods, services, and energy.
The US was set to impose new tariffs this Sunday, but that decision was reversed thanks to the new agreement. Besides, Washington will reduce some of the older taxes.
On Thursday, US President Donald Trump met with his trade advisers to discuss the potential deal with Beijing, which eventually led to the historic agreement.
The deal is expected to be signed in the first week of January next year.
Trump tweeted on Friday:
“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.”
On Friday, the US stock markets updated the record highs, showing the biggest daily gains in years. Asian stock markets, including Japanese Nikkei, Hong Kong’s Hang Seng, and Shanghai Composite also surged.
Now US analysts are worried about the impeachment of Trump, as Democrats in the U.S. House of Representatives approved two charges against the President on Friday.