China, US agree to roll back tariffs as part of trade deal

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In their latest effort to defuse the trade tensions that have hurt economies worldwide for months, China and the United States have agreed to roll back tariffs on each other's goods in phases as they work towards a trade deal, Beijing said.

Gao said if the two sides reached a phase-one agreement, tariffs should be rolled back "in the same proportion and simultaneously".

A deal may be signed this month by Trump and Xi at a yet-to-be determined location.

"This is why removing tariffs must be a part of the phase one deal (expected to be signed by the United States and China)", Gold said.

In what could be another gesture to boost optimism, China's state news agency Xinhua reported late on Thursday that the Chinese customs and Ministry of Agriculture are considering removing restrictions on US poultry imports.

Now, we're seeing early signs of a resolution that has legs to work as China has acknowledged tariffs to and from both sides will start being reduced or even lifted.

President Donald Trump agreed to postpone a deliberate tariff hike whereas lower-level officers hammered out particulars.

China says it has a deal with the end their tit-for-tat over tariffs.

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In terms of the content of the deal, differences still remain on the scale of American farm products China will purchase.

Commerce Secretary Wilbur Ross in recent days talked up the chances of phase one deal that he said would send a stabilizing message to the world, but did not explicitly address tariff reductions.

China's imports of American soybeans and other goods tumbled more than 26% in the first nine months of this year following tariff hikes and orders to importers to find other suppliers.

The Oct. 12 settlement helped to ease monetary market jitters, however the two sides have but to report progress on main disagreements over know-how and different irritants following 13 rounds of talks.

"The last 24 hours have seen a bit of whiplash in the U.S./China trade drama, as a potentially negative headline yesterday has been more than offset by a positive one this morning", said Tom Essaye, the founder of The Sevens Report, in a note to clients.

The increased revenue was the result of the USA levying a new 15 percent tariff on $111 billion of Chinese goods beginning September 1.

Neither government has so far released details of the agreement but Trump stated that it includes some measures relating to the devaluation of the Chinese currency and intellectual property issues although it does not address the forced transfer of technology in China, an issue that will be discussed in phase two.