Washington: After the second day of high-level trade talks,United States President Donald Trump has announced that the US and China reached a “very substantial phase one deal”.
US officials had signalled good news was coming on Friday after the discussions ended, boosting investor hopes that the world’s two largest economies are cooling the fires of their 15-month trade war.
Trump said the agreement averts a threatened tariff hike and covers agricultural purchases, currency and some aspects of intellectual property, adding that it will take up to five weeks to get the deal written.
The remarks to reporters came afterTrump’s meeting with Chinese Vice Premier Liu He, Beijing’s lead trade negotiator for the talks in Washington.
The partial agreement is expected to lay the groundwork for a broader deal that Trump and Chinese President Xi Jinping could sign later this year. But key sticking points remain around enforcement.
Major US stock indexes were trading significantly higher on hopes the talks would produce some sort of a deal, with the Dow Jones Industrial Average up over one percent.