The latest round of talks to resolve a trade war between the United States and China has brought favorable fruits as the Trump administration agreed to suspend a tariff hike on Chinese imports, while China agreed to buy $40-50 billion of U.S. farm products.
Under the agreement reached after two days of talks in Washington, the United States will not raise tariffs from 25% to 30% on $250 billion worth of Chinese goods, which was initially set to take effect next Tuesday, Oct. 15.
The Associated Press citing the White House reported that Washington and Beijing made progress on some thornier issues, including China’s lax protection of foreign intellectual property. However, the two sides remain different on other matters, including U.S. allegations that China forces foreign countries to hand over trade secrets in return for access to its massive market.
The U.S. and Chinese negotiators have so far reached their tentative agreement in principle.
“We’ve come to a very substantial phase one deal,” President Donald Trump said, adding it will take three to five weeks to get written. The president announced the trade truce in a White House meeting with Vice Premier Liu He – top Chinese negotiator.
“It took us a long time to get here, but it’s something that’s going to be great for China and great for the USA,” the president said.
Earlier on Friday, President Trump signaled in a tweet that, “Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days.”
The cease-fire in their trade war maybe a temporary truce as the United States has another plan to impose tariffs on an additional $160 billion in Chinese products from Dec. 15.
Includes reporting from The Associated Press