U.S., China say any deal would drop some tariffs

So-called ‘phase one’ pact not finalized; terms still under discussion.

An agreement between the world’s two largest economies is a major advancement toward defusing trade tensions.

WASHINGTON — The U.S. and China have agreed an initial trade deal between the two countries would roll back part of the tariffs placed on each other’s products, a major step toward defusing tensions between the world’s two largest economies.

What happened

The so-called “phase one” deal has not been finalized, and exact terms are still under discussion. But the Trump administration has committed to rolling back tariffs if a deal is reached, according to people familiar with the negotiations. The move suggests the sides are nearing a deal that would offer relief to businesses and consumers.

Why it matters

The development comes as President Donald Trump and his Chinese counterpart, Xi Jinping, face political and economic pressure to resolve their 19-month trade fight.

Investors have already begun anticipating some type of resolution. Stocks soared Thursday after the Chinese said Beijing and the Trump administration had agreed to remove some tariffs as part of any deal reached between the two sides. Gao Feng, a spokesman for China’s Commerce Ministry, said at his weekly news conference in Beijing that China is insisting any deal include tariff reductions and that the U.S. had agreed to remove tariffs as part of an agreement.

Last month, Trump announced he would cancel a planned tariff increase in October as part of a first-phase trade deal but made no mention of the tariffs he had already placed on more than $360 billion of Chinese products. Since then, the U.S. has begun considering rolling back tariffs put in place Sept. 1 on more than $100 billion of Chinese food, clothing, lawn mowers and other products, according to people briefed on the discussions.

What’s next

Gao did not specify what tariffs might be dropped, or when.

LAM YIK FEI / NEW YORK TIMES The Yangshan Port near Shanghai is seen earlier this year. There may be a break in the U.S.-China economic conflict that has cast a shadow over global growth prospects.