Washington has agreed to suspend a part of tariffs on Chinese items and cut others in return for Beijing’s pledge to increase U.S. farm product purchase next year, sources stated Thursday, taking a step to de-escalating the grievous trade conflict.
Neither Washington nor Beijing has released any official statements, nevertheless, raising questions on whether or not the terms had been agreed upon by each side.
A source aware of the status of bilateral negotiations said the U.S. would suspend duties on $160 billion in Chinese goods anticipated to go into effect on Sunday and roll back current tariffs.
In return, Beijing would agree to purchase $50 billion in U.S. agricultural goods next year, double what it acquired in 2017, before the trade battle started, two U.S.-primarily based sources briefed on the talks stated.
The news boosted financial markets with the Chinese yuan rising to its highest in over four months while shares surged in early Asian trade Friday.
Both nations must make formal declarations to cancel or postpone the scheduled tit-for-tat tariffs on each other’s items, which might be scheduled to take effect Sunday, however. Chinese tariffs on U.S. imports would take effect at 0401 GMT, while U.S. tariffs on Chinese items are expected to take effect at 0501 GMT.
China has thus far avoided imposing unilateral levies on U.S. imports; however, it has matched any new round of tariffs imposed by Washington with contrary moves.
Two sources acquainted with the talks had started earlier Thursday that U.S. mediators were offering to cut current tariffs on Chinese items by up to 50% as well as drop the new round tariffs scheduled to go into effect on Sunday in an attempt to secure a “Phase 1” settlement first promised in October.