The US today reached a preliminary deal with China to end the year and a half long trade war that has slowed global growth and dampened investment around the world.
A source briefed on the talks told Reuters: “The written agreement is still being formulated, but they have reached an agreement in principle.”
The White House is expected to make a statement later on Thursday.
In addition, China has reportedly agreed to make $50bn in agricultural purchases in 2020.
In order to secure the so-called “phase one” deal, US negotiators said they would cut tariffs on Chinese goods by as much as 50 per cent, and suspend further tariffs due to be enforced this weekend.
These would apply to roughly $160m (£118.8bn) of imports such as computer monitors and games consoles.
If the tariffs are not suspended, Beijing will put further sanctions on US goods, with the possibility of putting talks on hold until next year’s US presidential election.
Read more: Cautious China sucks liquidity from markets
These sanctions, which would apply to products such as corn to small aircraft, would add to existing tariffs of five and 10 per cent on $75bn worth of US goods, such as soybeans, pork, and chemicals.
China also threatened to reimpose am additional 25 per cent tariff on US made vehicles which has been suspended since the beginning of this year.