China and US agree to lift some tariffs in sign of trade war thaw

China and the US have agreed to remove some tariffs, according to Beijing, in a sign that the world’s two biggest economic powers may be moving closer to reaching a trade war truce, reported the Financial Times.

A Chinese commerce ministry spokesperson, Gao Feng, said on Thursday that negotiators for both sides had agreed to remove some tariffs “in phases,” raising hopes that President Donald Trump and President Xi Jinping would be able to sign an agreement this year.

Feng said gradually lifting tariffs could help “stabilize market expectations. As for how much will be eliminated in the first phase, that will depend on the content of the phase one agreement.”