The U.S. and China have reached an agreement on a phase 1 trade deal, providing a detente on the 17-month trade war.
The agreement calls for Beijing to step up purchases of American products, while Washington would scrap or scale back on tariffs.
In a tweet, U.S. President Donald Trump said he's cancelled plans to slap new tariffs of 15 percent on some 160 billion U.S. dollars worth of Chinese goods, while Washington will also halve the tariffs on 120 billion dollars worth of Chinese imports to 7-and-a-half percent.
But the U.S. will maintain 25 percent tariffs on another 250 billion dollars of products.
"This is a very large deal. The China deal covers tremendous manufacturing, farming, a lot of rules, regulations, a lot of things it covers, it's a Phase 1 deal, but a lot of big things are covered. "The tariffs will largely remain at 25 percent on 250 billion U.S. dollars, and we'll use them for future negotiations on the Phase 2 deal."
U.S. Trade Representative Robert Lighthizer later told reporters that, China agreed to buy 32 billion dollars of additional U.S. agricultural products over two years as part of the deal.
That's on top of the 2017 baseline of 24 billion dollars.
In all, Beijing is committed to buying an extra 200 billion dollars in U.S. goods and services.
However, specifics were not disclosed to avoid disrupting the commodity markets.
China confirmed the deal,.. but didn't provide much details either.
Beijing said its core concern was the U.S. removing tariffs on Chinese goods,. adding that the two sides had agreed on the text of a nine-chapter agreement, that includes intellectual property, technology transfers, and agricultural products.
"Both sides have reached a consensus that the U.S. will fulfill its commitments to phase out additional tariffs on Chinese products, so as achieve a switch from hiking to the cutting of additional tariffs."
The U.S. and China will now have to carry out legal procedures and make arrangements for signing the deal.
Kim Min-ji, Arirang News.