President Donald Trump said Friday that the US and China had reached a "substantial phase one deal" on trade that would eliminate a tariff hike scheduled for next week.
Trump announced the deal in the Oval Office with members of his economic and professional team, as well as Chinese Deputy Prime Minister Liu He and his team, who were in Washington for talks.
Trump said the agreement would take three to five weeks to write and could possibly be packed and signed in mid-November, when world leaders travel to Chile for the Asia-Pacific Summit for Economic Cooperation.
"We've come to a great deal, subject to it being written," Trump said.
"This is going to be good for China and good for the United States," he added.
News of a possible deal had been reported earlier in the day and sent the markets upward. The Dow Jones Industrial Average closed the day by nearly 320 points, or 1
Trump – who last week publicly called on the Chinese government to investigate former Vice President Joe Biden and son Hunter over the latter's involvement in an investment fund that raised money in the country – said Friday that Bidens did not come up during trade talks.
"I haven't raised Joe Biden. China can do whatever they want with regard to Bidens," Trump said. [19659002IhenholdtilTrumpvilKinaunderdenavtalteavtalenkjøpe$40til$50milliarderamerikanskelandbruksprodukterAvtalenvilogsåomfatteforpliktelserfraKinaknyttettildensvalutaimmaterielleiendomoggidenamerikanskefinanssektorentilgangtilkinesiskemarkedersaTrump
"We have come to an agreement on intellectual property, financial services. A A tremendous deal for farmers. A purchase of agricultural products between 40 and 50 billion dollars," said Trump.
Under the deal, Treasury Secretary Steven Mnuchin told reporters, the United States will no longer go ahead with a planned tariff increase on October 15. By that day, US $ 250 billion Chinese customs duty rates had risen from 25 percent to 30 percent.
Mnuchin said Trump "has not made a final decision" to postpone or eliminate another round of tariff rates set to take effect December 15. That day, a 15 percent tariff is set to bring in about $ 160 billion in Chinese imports, including a significant number of consumer goods such as clothing, toys and electronics.
Trump said it would be a "phase two" agreement, and that the talks for it would start "almost immediately after we have completed phase one."