US, China negotiators reach preliminary agreement to ease trade tensions

US, China negotiators reach preliminary agreement to ease trade tensions

The president previously said he wanted to strike one, big deal with China, though on Friday he said it makes sense to handle such a major pact in sections.

"The Chinese side has come with great sincerity and is willing to make serious exchanges with the US on issues of common concern such as trade balance, market access and investor protection, and promote positive progress in the consultations", Liu said.

Trump called the agreement "a very substantial phase one deal", adding that there will be two or three phases in China trade talks. USA manufacturers are hurt by rising costs from the tariffs and by uncertainty over when and how the trade hostilities will win.

"We've come to a deal on intellectual property, financial services, a tremendous deal for the farmers, a purchase of Dollars 40-50 billion worth of agricultural products".

That would be a stunning feat, more than doubling from the prior level of less than US$20 billion in 2017.

China will continue to increase purchases of U.S. farm exports and pledge to refrain from currency manipulation while Washington will suspend a tariff increase, Bloomberg reported.

"So I'd suggest farmers have to go and immediately buy more land and get bigger tractors".

"There was a lot of friction with China".

"Good things are happening at China Trade Talk Meeting", Trump tweeted on Friday.

When asked about those tariffs, Trump said: "I think that we're going to have a deal that's a great deal that's beyond tariffs".

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The Dow and broader stock market rallied again on Friday after Trump had said the United States and China had reached a preliminary agreement.

The signing could take place in the middle of November in Chile on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.

"It's beyond a trade deal", Trump said.

The president said the highest amount of agricultural products Beijing ever purchased from the U.S.in a year was $16 billion. The National Retail Federation welcomed Friday's progress but said "uncertainty continues" and they'd like to see all tariffs lifted.

But even the incremental win could be a boon for Trump, who faces an impeachment firestorm and a stinging criticism in Congress for his treatment of Kurdish allies in Syria, only the latest episodes in the White House's perpetual turmoil.

Stocks fell off their session highs shortly before the close after U.S. Trade Representative Robert Lighthizer said a decision had not been made over additional U.S. tariffs scheduled for December.

Despite the announcement, the deal has not been completed, and Treasury Secretary Steven Mnuchin said more work remained, including on the agreements related to currency and access for American financial companies.

Trump and Liu have met face-to-face after previous rounds of talks and each time appear to make some progress. This would limit both countries from devaluing their currencies in order to gain an unfair competitive trade advantage.

Trump said Friday's deal has yet to be put down on paper but said, "We should be able to get that done over the next four weeks". China has so far balked at Trump's demands for profound changes in the way Beijing manages its economy, something analysts say could politically undermine the communist party.

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