President Donald Trump Reportedly Signs Deals To Pause The U.S.-China Trade War

President Donald Trump has reported signed off on a first-stage trade deal with China which will forestall the December 15 introduction of a new wave of United State tariffs on consumer goods worth about $100 billion from the Chinese market.

People who have enough information on the subject said that the deal was presented to President Donald Trump by trade advisers on Thursday, and the deal included a promise by China to purchase more of Agricultural goods from the United States. They also reported that officials discussed the possibility of reducing existing duties on Chinese products of which the terms and conditions have been agreed to but the legal text has not yet been finalized.

There are several whispers that an announcement is expected today, Friday December 13 in Washington.

Stocks in the global market hit an all-time for the first time since early 2019 and bond yields climbed over optimism. On Thursday, President Trump in A tweet said that the United States and China are close to signing the big trade deal. The news alone sent equities higher and the Chinese Yuan surged the most in the year and rose above 7 Yuan per dollar. In his tweet, Trump said, "They want it, and so do we!". He tweeted this five minutes after the equity markets opened and this sent the stocks to new records.

Previously, President Trump changed his mind on deals with China. Negotiators have reportedly been working on the first phase of the deal for months since Trump announced in October that the United States and China have reached an agreement that could be signed off within two weeks. The United States added an import duty of 25% on about $250 billion of Chinese products and a due of 15% on another $110 billion of its imports over the period the 20-month trade war has lasted. Presently, the trade war discussions are focused on how to reduce those rates by as much as half of the initial agreement that President Donald Trump announced over 2 months ago.

There are reports that the increase in the purchase of agricultural products by China in exchange for the tariff relief would require efforts by the Chinese to stop intellectual property theft and an agreement by both countries not to manipulate their currencies.

Longstanding complaints by the United States over the wide web of subsidized services, including that of cheap electricity to low-cost loans that China has used to its industrial sector will be discussed at length at a later date.

On Sunday by 12:01 am Washington time, the new duties on goods from China are expected to take effect unless the government says otherwise.  Chinese foreign minister, Wang YI talked about other issues that between the two countries saying that actions of the U.S. has severally damaged the basis for a mutual relationship even in the midst of their current complex state.

It is believed that the outcome of this trade deal will be the determinant of the trajectory for the 2020 growth.