Washington, D.C., and Beijing—U.S. and Chinese officials announced a limited agreement to halt the trade war, according to The Wall Street Journal. President Trump has removed the threat of new tariffs, and Beijing has agreed to purchase American farm goods and other products.
The new tariffs would have been imposed on $156 billion in annual imports of goods including smartphones, toys, and consumer electronics. The U.S. will also slash the tariff rate in half on roughly $120 billion of goods, from 15% to 7.5%. There are still 25% tariffs on around $250 billion in Chinese goods. WSJ reports that U.S. Trade Representative Robert Lighthizer said that there is no agreement in place to reduce these tariffs, but that Trump told reporters in the Oval Office that the U.S. will use the remaining tariffs as leverage in phase two of the negotiations.
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China will boost American agricultural purchases by $32 billion over previous levels over the next two years, increasing total farm-product purchases to $40 billion a year, with China working to raise it to $50 billion a year.
WSJ reports that Lighthizer also said that China made specific commitments on intellectual property, including counterfeiting, patent and trademark issues, and pharmaceutical rights.
WSJ notes that details have not been released, and that no date has been set for continuing negotiations.