China and the US have struck a ‘phase one’ deal that will see billions of dollars in tariffs removed or delayed in the declaration of a preliminary trade agreement.
A new wave of US tariffs on Chinese imports was due to take effect on Sunday, December 15. This has been cancelled for now.
“We will begin negotiations on the phase two deal immediately, rather than waiting until after the 2020 Election,” said US President Donald Trump said in a tweet. “This is an amazing deal for all.”
The preliminary trade agreement has put a stopper to the planned increase in tariffs on Chinese-made goods such as smartphones, clothing and toys, all of which would have become more expensive for Americans ahead of Christmas.
US negotiators are now reportedly offering to significantly reduce existing tariffs on around $360bn worth of Chinese imports.
The agreement is a deal in principle, which means that if China breaks any part, the Trump administration has the ability to re-implement tariffs.