United States 'very close' to trade deal with China, Trump tweets

United States 'very close' to trade deal with China, Trump tweets

United States 'very close' to trade deal with China, Trump tweets

Trump tweeted in a markedly more optimistic tone, after months of false dawns in a trade war roiling world markets. His statement Thursday that the USA wants a deal soon contrasted with remarks he made earlier this month that suggested he was willing to wait until after the 2020 elections in the U.S.to sign a pact.

An announcement could come as early as Thursday, Bloomberg reported.

The White House had no comment on any tariff reduction offers.

The terms have been agreed but the legal text has not yet been finalized, according to the people.

USA stocks rose and Treasury yields spiked on the news.

In an attempt to secure a "phase one" trade deal, US negotiators offered to cut existing tariffs on Chinese goods by as much as 50% and suspend new tariffs that were scheduled to go into effect on Sunday, two people familiar with the negotiations said earlier on Thursday.

"They want it, and so do we!" he tweeted five minutes after equity markets opened in NY, sending stocks to new records.

The phase-one pact has been expected to reduce existing tariffs and delay ones due to take effect on Sunday.

"What Trump is saying and what China is responding to would suggest that maybe we are more at a status quo level of a detente than at further deterioration in relationships", said Willie Delwiche, investment strategist at Baird.

The U.S. has added a 25% duty on about $250 billion of Chinese products and a 15% levy on another $110 billion of its imports over the course of a roughly 20-month trade war.

The S&P index recorded 77 new 52-week highs and two new lows, while the Nasdaq recorded 169 new highs and 47 new lows.

In exchange for the tariff cuts, China would make firm commitments to purchase large quantities of US agricultural and other products, provide better protection for USA intellectual-property rights, and increase access to China's financial-services sector for American financial firms.

While the White House gathering may highlight continuing divisions over whether to hit Beijing with a new wave of tariffs, Trump's tweet suggests he may be willing to forego escalation for now.

Wall Street has focused on the new round of tariffs, hopeful they would at least be delayed as the world's two largest economies make progress on an initial trade deal.

The Wall Street Journal and Bloomberg reported that USA negotiators have offered to reduce tariffs on about $375 billion United States in Chinese goods by 50 per cent across the board, two people familiar with the negotiations said on Thursday, and suspend tariffs on $160 billion US in goods scheduled for Sunday.

Before today, Trump's advisers have sent conflicting signals and stressed that he hadn't made up his mind on the next steps.

The two sides have increased tariffs on billions of dollars of each other's imports in a fight over Beijing's technology ambitions and trade surplus.

Investors expressed some wariness of placing too much faith in the trade developments given the continued ups and downs during the prolonged U.S.

The US has said the tariffs are aimed at making China give up "unfair" trade practices, including alleged intellectual property theft. Otherwise, there would be no "phase one" deal, according to the WSJ's sources. U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and advisers Larry Kudlow and Peter Navarro are expected to attend the meeting, the reports said. That would set up a push to conclude the talks in January, possibly before a State of the Union address to Congress by Trump.

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