US reaches 'deal in principle' with China to end trade war

Source: The Guardian

December 12, 2019 at 21:18

A source close to the talks said the US and China had struck a deal to end their 17-month trade war. Photograph: Greg Baker/AFP via Getty Images

White House expected to announce accord later on Thursday

The White House has reached a “deal in principle” with Beijing to resolve the 17-month US-China trade war, according to a source briefed on the trade talks.

The White House was expected to make an announcement later on Thursday, the source said.

“The written agreement is still being formulated, but they have reached an agreement in principle,” the source said. No details were immediately available.

In an attempt to secure a “phase one” trade deal, US negotiators offered to cut existing tariffs on Chinese goods by as much as 50% and suspend new tariffs that were scheduled to go into effect on Sunday, two people familiar with the negotiations said earlier on Thursday.

The US-China trade war has slowed global growth and dampened profits and investment for companies around the world.

If Donald Trump does not suspend the new tariffs, Beijing officials will apply more tariffs on US goods and may suspend talks until after the US presidential election in November 2020, trade experts believe.

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