Phase one US-China trade war deal signed by Donald Trump and Liu He, though most tariffs remain
- Pact includes Beijing’s pledge to buy at least US$200 billion of American goods and services more than it did in 2017, over the course of two years
- In return, US is to reduce tariffs on some Chinese imports and cancel duties that were set to take effect in December
The United States and China signed a partial trade agreement on Wednesday aimed at putting the brakes on an 18-month trade war between the world’s two largest economies.
With provisions covering purchase commitments, financial market access, intellectual property protection and enforcement, the phase one deal was made final by US President Donald Trump and China’s chief trade negotiator, Vice-Premier Liu He.
The incremental deal is designed to be the first in a series of agreements intended to end a trade conflict that has seen tariffs slapped on hundreds of billions of dollars’ worth of trade – rupturing supply chains, shaking markets, increasing consumer costs and contributing to a global growth slowdown.
“Today we take a momentous step, one that has never been taken before with China,” Trump said before signing the agreement with Liu in the White House’s East Room. The room was packed with business executives invited by the administration, as well as reporters, US lawmakers, Trump cabinet officials and members of the Chinese delegation.
Trump said he would be travelling to Beijing in the near future “to reciprocate” and meet China’s president, Xi Jinping.
After speaking briefly on the significance of the trade deal, Trump abandoned his teleprompter for a half-hour diversion, thanking various US officials, lawmakers and business leaders in the room, and airing well-worn grievances, including over his impending impeachment trial in the Senate.
