US President Trump signed a trade agreement with China that is expected to boost exports from US farmers and manufacturers and is aimed at lowering tensions in a long-running dispute between the economic powers.
Vice Premier Liu He, Beijing’s chief envoy in talks with Washington over their tariff war, will sign phase one of the trade deal which includes China buying more American farm goods.
After a dispute that raged for close to two years, with several fumbled efforts at a resolution, the US agreed to cancel planned tariffs and rollback others immediately, without a similar commitment from China to lift tariffs it imposed on the US.
The two sides agreed to reduce tariffs on each other's goods in a move that might help reverse a slowing global economy.
Tariffs come amid an ongoing trade war between the US and China and could risk destabilising the global economy further.
The drop mounts pressure on Chinese leaders to avert politically dangerous job losses as they fight a tariff war with US President Donald Trump over Beijing's trade surplus and technology ambitions.
Trump's decision marked the third time since August that the United States has delayed or removed tariffs on Chinese imports ahead of the year-end shopping season.
The drop comes after a surprise 3.3 percent rebound in July despite the yearlong battle with Washington and weakening global demand.
Yields on benchmark 10-year Treasury notes dropped to their lowest since mid-2016 as the latest salvos in the China-US trade war shook confidence in the world economy and sent investors to the safe harbour of gold.
US President Donald Trump says he would be raising planned tariffs on $300 billion in Chinese goods from 10 percent to 15 percent.
China said it would impose additional tariffs on a total of 5,078 US products that include agricultural products, crude oil, small aircraft and cars. Tariffs on some products would take effect on September 1 and others on December 15.
Also boosting investor sentiments were comments from China that the Washington and Beijing held discussions on trade overnight and would talk again the next two weeks.
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