The first part of a broader trade agreement between the world’s top economic superpowers was finally inked on Wednesday with the US suspending new tariffs in exchange for Chinese purchases of $200 billion in American goods.
The accord, signed by President Donald Trump and Chinese Vice Premier Liu He, puts on pause the simmering trade row between Washington and Beijing. The more than year-long trade conflict resulted in multiple rounds of tit-for-tat tariffs on billions worth of goods.
The provisions of the deal include Washington’s suspension of tariff increases on Chinese exports, with Beijing agreeing to buy more American farm and energy products as well as manufactured goods.
The signing was preceded by Trump’s speech in which the President thanked officials who have worked on the deal and said he would visit China soon.
After several rounds of talks, the US and China initially reached “a historic and enforceable agreement” in December, averting a new round of tariff hikes. Since then, the two sides have been working on the details and translating the 86-page document.
The two biggest economies in the world were close to striking a comprehensive trade deal back in May. However, they failed to reach an agreement, with Trump accusing Beijing of backtracking on its commitments. Beijing denied any wrongdoing and accused Washington of escalating the trade war.
For more stories on economy & finance visit RT’s business section
Comments are closed.