by Tyler Hale
U.S. and Chinese officials have reportedly agreed on a phase-one trade deal that will stave off tariffs set to go in effect on December 15.
Bloomberg reports that negotiators have agreed to the terms of the deal and that President Donald Trump has signed off on the agreement. However, there has been no confirmation from the White House Press Office as of press time for this article.
Trump has given indications today that a trade deal is in the works for today. At 8:35 a.m., he tweeted that U.S. officials were “getting VERY close to BIG DEAL with China.” Since that time, he has not commented on the trade matter.
Getting VERY close to a BIG DEAL with China. They want it, and so do we!
— Donald J. Trump (@realDonaldTrump) December 12, 2019
According to the Guardian newspaper, the U.S. negotiators agreed to suspend the Dec. 15 tariffs and possibly slash existing tariffs up to 50 percent. The tariffs set for Dec. 15 would amount to approximately $160 billion and would target Chinese-made electronics, including iPhones, cell phones, video game consoles and more.
In turn, the Chinese government would agree to purchase more agricultural goods from U.S. producers, according to Bloomberg sources.
Wall Street received the news of a trade deal well, with stocks surging upwards. The Dow Jones Industrial Average, S&P 500 Index, Nasdaq Composite Index and the Russell 2000 all closed to new highs. Nasdaq, S&P 500 and Russell 2000 set new highs with increases of 63.27 points, 26.95 points and 15.63 points, respectively. The Dow Jones rose 220.75 points, shy of a new record.