President Trump Strikes New Trade Deal with China

President Trump Strikes Partial Trade Deal with China
President Trump Strikes Partial Trade Deal with China

President Donald Trump successfully reached a new partial trade deal with China after years of negotiations.

On Friday the White House hosted Chinese Vice Premier Liu He, where he joined Trump in announcing the new deal.

President Trump went even further, declaring that he expects to sign a full deal with Chinese President Xi Jinping at an upcoming Chilean summit in mid-November.

The US president also declared he will not be imposing the newest round of tariffs on China as a show of good faith. The US was scheduled to raise tariffs on $250 billion of Chinese goods from 25% to 30%.

Donald Trump said the new deal will include a Chinese agreement on American intellectual property rights and financial services as well as an agreement by China to purchase up to $50 billion worth crops from American farmers.

Chinese President Xi Jinping sent a letter to President Trump recently concerning the new trade deal. Xi said:

“With our two teams making progress on some parts of the agreement under consultation, it is important that we address each other’s concerns properly and make positive headway in the other areas as well.”

“A healthy and steady China-U.S. relationship serves the interest of our two countries and the world at large. Let us work together to manage differences on the basis of mutual respect and expand cooperation for mutual benefit, so as to bring our relations forward along the right track.”

American markets reacted very positively to the announcement of the trade deal as well. The Dow Jones jumped 319 points (1.2%) in response to the deal, and are expected to go even higher next week. The S&P 500 rose 1.1% and the Nasdaq Composite jumped 1.3%.

The biggest winner from the announcement appears to be Apple, which saw its stock (AAPL.O) rise by 2.7% to a new record high.

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