Trump announced that in two weeks Washington will sign the first phase of a superpower agreement on Wall Street
Agreed. Trump and Shi // Photo: Reuters
Is the US-China trade war coming to an end? President Donald Trump announced yesterday that in two weeks, on January 15, the White House will sign the first phase of an agreement between the two largest economies in the world. Trump tweeted on Twitter: "China's top echelons "They will attend a ceremony in Washington, presumably Vice President Liu Ha. The President also added that shortly after the signing, Trump will make an official visit to China to initiate negotiations for the second phase of the agreement. The essence of the deal: Relief from U.S. tariffs for a significant increase Purchase of American products, including agriculture, from the Chinese.
Two weeks ago, Trump sent soothing messages as he canceled a $ 15 billion tariff increase on Chinese goods worth $ 160 billion, scheduled to take effect on December 15. In addition, Trump cut half of the existing tariff rate to 7.5% on $ 120 billion worth of goods, but left 25% on $ 250 billion worth of goods. At the same time, the Chinese pledged to purchase US $ 200 billion in services and goods over the next two years. The acquisitions will focus on four sectors: manufacturing, energy, agriculture and services.
Markets have shown little interest in Trump's statement, and at least at the start of trading day, no dramatic price hikes have been recorded. However, the US Stock Exchange closed one of its best years in history yesterday, with the S&P index up 28% in 2019 - its highest in 22 years. The Nasdaq rose even more, by 31%, and the Dow Jones rose 22% last year.