US, China reach ‘substantial phase one’ trade deal, says Trump

The US and China made a major breakthrough toward ending their 18-month trade war by reaching a partial deal Friday after two days of negotiations in Washington, reported Caixin.

Speaking in the Oval Office during a meeting with Chinese Vice Premier Liu He on Friday afternoon, President Donald Trump said the negotiators reached “a very substantial phase one deal.”

Trump said the deal includes as much as $40 billion to $50 billion in Chinese purchases of agricultural products and a commitment to further open up China’s financial sector.

In exchange, the US agreed not to proceed with an increase in tariffs to 30% from 25% on $250 billion of Chinese goods that were set to go into effect next Tuesday.