The US president has described the first part of a bilateral trade agreement as an "amazing deal." But Chinese officials were cautious, saying they hope "both sides will abide by the agreement."
Trump noted that tariffs targeting Chinese-made consumer electronics would not go into effect on Sunday. He said China had "agreed to many structural changes and massive purchases of agricultural product, energy and manufactured goods."
"We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 election," said Trump. "This is an amazing deal for all. Thank you!"
Chinese Deputy Finance Minister Liao Min said Beijing would drop retaliatory tariffs that were initially intended as a response to scrapped US measures due to go into effect on Sunday.
"It is hoped that both sides will abide by the agreement," said Deputy Commerce Minister Wang Shouwen. "The deal can help expand economic and trade cooperation between the two nations and effectively manage the trade disputes."
The White House noted that tariffs of 25% on $250 billion (€225 billion) worth of Chinese goods would remain until both sides could agree to "phase two" of a bilateral trade deal.
The White House said tariffs on billions of dollars' worth of Chinese products would be partially lifted as part of the dealImage: picture-alliance/Xinhua/D. Ting
'Good start to the New Year'
Overall, businesses and investors were cautiously upbeat on the news of a thaw in the US-China trade war, with the US S&P 500 technology sector and tech-heavy Nasdaq posting gains.
"Our members will be relieved, as many have suffered from losses incurred by higher prices, non-tariff barriers imposed on their operations in China and the general uncertainty caused by the trade conflict," Doug Barry of the US-China Business Council told DW.
"Both sides would be wise to build on this agreement to confront more complex challenges including needed structural reforms by China. It won't be easy, but this is a good start to the New Year."
Washington and Beijing are expected to conduct a legal review of the deal and move forward with signing.
US President Donald Trump has repeatedly boasted that the tariffs he has imposed on trading partners are a financial windfall but, research shows it is Americans who bear the brunt of the impact. DW has an overview.
Image: picture-alliance/newscom/B. Greenblatt
Solar panels and washing machines
The first round of tariffs in 2018 were on all imported washing machines and solar panels — not just those from China. A study by economists from the Federal Reserve Bank of
New York, Columbia University, and Princeton University found that the burden of Trump's tariffs — including taxes on steel, aluminum, solar panels falls entirely on US consumers and businesses who buy imported products.
On Friday May 10, 2019 President Donald Trump imposed sanctions on $200 billion (€178 billion) worth of Chinese goods. The move raised tariffs from 10% to 25% on a range of consumer products, including cell phones, computers and toys. China's Commerce Ministry said it "deeply regrets" the US decision.
Image: Getty Images/AFP/STR
Issues with the EU
In April 2019, the United States said it wanted to put tariffs on $11.2 billion worth of goods from the EU. The list includes helicopters and aircraft from Airbus as well as European exports like famous cheeses such as Stilton, Roquefort and Gouda, wines and oysters, ceramics, knives and pajamas.
Image: Imago/Ralph Peters
EU fights back
The EU imposed import duties of 25% on a $2.8 billion range of imports from the United States in retaliation for US tariffs on European steel and aluminum. Targeted US products include Harley-Davidson motorcycles, bourbon, peanuts, blue jeans, steel and aluminum.
Image: Getty Images/AFP/M. Ralston
European automakers next?
May 17, 2019 is the deadline for President Trump to decide on imposing tariffs on vehicle imports from the EU. According to diplomats, Germany, whose exports of cars and parts to the United States are more than half the EU total, wants to press ahead with talks to ward off tariffs on automakers Volkswagen, Mercedes and BMW.
Image: picture alliance/dpa
India not exempt
India, the world's biggest buyer of US almonds, on June 21, 2018 raised import duties on the nuts by 20% and increased tariffs on a range of other farm products and US iron and steel, in retaliation for US tariffs on Indian steel. Trump said last month that he would end preferential trade treatment for India, which would result in US tariffs on up to $5.6 billion of imports from India.
Image: Getty Images/AFP/R. Schmidt
North American neighbors in tariff spat
Mexico on June 5, 2018 imposed tariffs of up to 25% on American steel, pork, cheese, apples, potatoes and bourbon, in retaliation for US tariffs on Mexican metals. While to the north, Canada on July 1 imposed tariffs on $12.6 billion worth of U.S. goods, including steel, aluminum, coffee, ketchup and bourbon whiskey in retaliation for US tariffs on Canadian steel and aluminum.
