U.s. outlines ‘phase 1’ trade deal with china, suspends october tariff hike

WASHINGTON: US President Donald Trump on Friday outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed. The emerging deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months to end a tariff tit-fortat that has whipsawed financial markets and slowed global growth.

He acknowledged the agreement could fall apart during that period, though he expressed confidence that it would not.

“I think we have a fundamental understanding on the key issues. We’ve gone through a significant amount of paper, but there is more work to do,” US Treasury Secretary Steven Mnuchin said as the two sides gathered with Trump at the White House. “We will not sign an agreement unless we get and can tell the president that this is on paper.”

With Chinese Vice Premier Liu He sitting across a desk from him in the Oval Office after two days of talks between negotiators, the president told reporters that the two sides were very close to ending their trade dispute.

“There was a lot of friction between the United States and China, and now it’s a lovefest. That’s a good thing,” he said.

Liu took a different tone in his remarks, however.

“We have made substantial progress in many fields. We are happy about it. We’ll continue to make efforts,” Liu said.

China’s official stateowned news organisation said that both sides “agreed to make the efforts towards a final agreement.”

Trump, who is eager to show farmers in political swing states that he has their backs, lauded China for agreeing to buy as much as $50 billion in agricultural products. But he left tariffs on hundreds of billions of dollars of Chinese products in place.

His announcement, while seen as progress, drew some scepticism.