President Donald Trump has signed a “Phase One” of the US and China deal, which includes a promise by Beijing to buy more American agricultural goods, for which terms have been agreed but the legal text has not yet been finalized, according to people familiar with the matter on Thursday.
Some details of the US and China agreement, which the world’s two giant economies will now move toward signing as they propose to rein in a hot trade war. As Chinese officials briefed reporters on the details of the deal Friday morning, Donald Trump additionally stated terms of what he called an “amazing deal.”
The agreement would suspend tariffs that were to take place Dec. 15 on $160 billion worth of additional goods including toys just as the Christmas toy shopping season hits overdrive.
In this week, Steve Pasierb, president & CEO of The Toy Association, announced a statement as the deadline loomed. “The government needs to stop using real people, real companies, and American jobs, 700,000 of them, as pawns in the ongoing trade war with China,” declared Pasierb.
U.S. markets regained some steam once Chinese officials started conversing, saying they have agreed to the text in the US and China deal and indicated that the next step is signing an agreement.
About 9 a.m. ET, Donald Trump rejected a report announcing he has signed off on the “phase one” deal, pushing stocks down. After several rounds of tariffs on Chinese and U.S. made goods in their respective markets, China and the U.S. have eventually come very close to a mini trade deal.
This news should come as a support to companies based in both the markets as it will decrease as well as reduce the new set of China’s tariffs cost beginning December 15.
A notice to reporters had told China would consider “issues on relevant progress of China-U.S. economic and trade consultation.”
The U.S. has entered into a deal in principle, which would hold another round of duties set to kick in on Sunday and cut some existing tariffs in half. Trump stated in a tweet the report is “completely wrong.”
Farmers and agriculture traders crave more details about the more than yearlong tariff spat between the two nations weighed on commodity prices and upended global crop shipments, helping Brazil as another supplier.
While grower returns have been covered by U.S. government support, many in the agriculture community have declared they’d rather see the return of trade flows into China than continue to be backed by federal payments.
Market watchers will want to know whether China has committed to a hard value for shipments. U.S. Agriculture Secretary Sonny Perdue said Thursday that Chinese officials told Trump that they would buy $40 billion to $50 billion worth of American farm products, but was reluctant to commit to deals. Specifically how much China could buy and over what period are important questions.
Hu Xijin, editor-in-chief of the state-run tabloid Global Times, told the trade talks “have moved a step forward, but how to define this step, and what real significance does it have, the answers lie in joint efforts of China and the U.S.”
China’s top diplomat on Friday gave a scathing speech about the United States, calling the country a “troublemaker” and urging it to “calm down,”., he told reporters, was “willing to resolve the contradictions and differences with the U.S. through dialogue and discussions based on equality and mutual respect, but we will never accept unilateral sanctions or bullying.”
The source told Yoon that China is afraid those purchases could put them in conflict with other trading partners. There is also concern that Trump could eventually reimpose tariffs on Chinese goods despite a phase one deal being signed.
In a regular press briefing Friday, China’s Foreign Ministry spokesperson Hua Chunying said the Chinese “always insist consultations must be based on the principles of equality and mutual respect, and agreements must be mutually beneficial and win-win.” She didn’t elaborate on the limited deal.