Earlier Friday the Wall Street Journal reported that China said a trade agreement with the US has not been completed yet, despite President Donald Trump's signoff on it. Trump quickly blasted the Journal report.
Bloomberg and CNBC reported the two sides have an agreement in principle, two months after Trump first announced a "phase one" bargain had been struck.
First announced by Trump on October 11, the interim deal with China offers a short-term political victory for the president and will allow him to claim that his tariffs have paid dividends, at the risk of being accused of postponing tougher issues like China's industrial subsidies.
After several rounds of tariffs on Chinese and US made products in their respective markets, China and the USA have finally come very close to a mini trade deal.
In August, China said it would impose five percent and 10 percent in additional tariffs on $75bn of United States goods in two batches. The U.S. was set to impose additional tariffs on Beijing this Sunday, but has since offered to delay those measures and slash previous trade duties in half. The tariffs scheduled to take place Sunday would have increased costs for Silicon Valley companies like Apple, which makes its iPhones in China, as well as for toy makers who rely heavily on production in Asia. The U.S. has agreed not to put 15 percent tariffs on $160 billion of Chinese goods on Sunday.
US stocks finished Thursday's session with solid gains, boosted by trade optimism.
Trump tweeted, "we have agreed to a very large Phase One Deal with China".
President Donald Trump said the USA and China are very close to signing a "big" trade deal that's expected to see him reduce existing tariffs and delay ones due to take effect on Sunday, sending stocks to new records. They want it, and so do we!' Many analysts had expected a deal ahead of December 15. But after that, talks on Britain's future trade relations will last months, even years, after that.
The Trump administration has been seeking a way to enforce any significant trade agreement with China, reflecting its contention that Beijing has violated past promises. Federal Reserve Chairman Jerome Powell is usually careful not to comment on the substance of the trade talks, but he did say this week it would be helpful to have some predictability.
"President Donald Trump earlier today announced, "(We're) getting very close to a big deal with China", following a trade meeting at the White House.
"The U.S. side has successively imposed unjustified restrictions and crackdowns on China in economy and trade, science and technology and personnel exchanges", Wang said. Investors expressed some wariness of placing too much faith in the trade developments given the continued ups and downs during the prolonged U.S.
Moreover, after the administration delivered an update of Nafta in the form of the U.S. -Mexico-Canada Agreement now headed for approval in Congress, notched a partial deal with Japan and freshened up an existing pact with South Korea, many in business were willing to give Trump the benefit of the doubt on trade, he said.