WASHINGTON (AP) — President Donald Trump said Friday that the U.S. has canceled plans to impose new tariffs on $160 billion worth of Chinese imports Sunday as part of a modest interim agreement that de-escalates a 17-month trade war between the world’s two biggest economies.
The United States is also reducing existing import taxes on about $112 billion in Chinese goods from 15% to 7.5%
In return, Trump said on Twitter, the Chinese have agreed to “massive″ purchases of American farm and manufactured products. He did not specify how big those purchases would be.
Chinese officials said at a briefing in Beijing that if Washington reduces the tariffs, China will lower its trade penalties on American goods and also scrap plans for new tariffs Sunday.
“China is ready to work with the U.S. side to do more to promote growth in trade,” said Liao Min, deputy finance minister.
Asked to confirm reports that Beijing had committed to buy $50 billion of American farm goods, Liao said details would be released later.
The ``Phase 1″ deal announced Friday leaves unresolved some of the thorniest issues. But Trump said work on a follow-up would begin ``immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!″