US, China agree on first phase of trade deal

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President Donald Trump and Chinese President Xi Jinping have agreed on a partial trade pause Friday, with Trump saying the leaders could sign the deal as soon as next month.

The story: Speaking at the White House, Trump said: “We’ve come to a very substantial phase one deal.”

Trump said the deal would require China to purchase $40-$50 billion worth of U.S. agricultural products and accept certain intellectual-property concessions related to financial services and currency, according to Fox Business.

This is only the first of at least two phases of the comprehensive agreement.

In return, the U.S. will not increase tariffs on Chinese goods.

In August, Trump threatened to increase tariffs on $250 billion worth of Chinese goods from 25 to 30%, according to The New York Times.

“China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!)” Trump tweeted. “Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%.”

Now, in a letter to Trump released by the White House on Friday, Xi wrote that the U.S. and China must collaborate to “advance China-US relations.”

“I hope the two sides will act in the principle and direction you and I have agreed to, and work to advance China-U.S. relations based on coordination, cooperation and stability,” the letter said, as reported by Bloomberg.

Trump implied in a Friday tweet that the trade talks with China were heading in the right direction.

“Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen!”

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Author: HEDGE

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