US President Donald Trump suggested on Saturday that a new trade deal with China will be signed off on “very shortly.”
After months of jittery markets and trade uncertainty, the US and China are entering what appears to be a trade truce. The trade war between the world’s two largest economies has led to back-and-forth tariffs, causing uncertainty on the markets, and even harming economic growth globally.
Phase one of the new trade deal won’t end the trade war, but it will see some of the bigger provocations from both sides being lifted. Under this first phase, the US is agreeing to reduce some of the tariffs it’s placed on Chinese imports in exchange for increased Chinese purchases of American agricultural products. According to US Treasury Secretary Steve Mnuchin, the agreement will be signed in early January.
Chinese President Xi Jinping has also come out in favor of the first phase of the new agreement. Speaking on the topic, Xi explained “Both the U.S. and Chinese markets and the world have responded very positively to this. The U.S. is willing to maintain close communication with China and strive to sign and implement it as soon as possible.” Xi went on to explain that he is open to exchanging views with Trump on the two countries’ relationship based on “coordination, cooperation, and stability.”