U.S. President Trump said on Friday that he had reached a “substantial deal” with China that will forestall a planned tariff increase on Oct. 15, The New York Times reports.
Trump said the U.S. had reached a “phase one” agreement that would take several weeks to write and would likely be signed by both sides in November.
The deal involves China buying US$40bn to US$50bn worth of U.S. agricultural products, along with agreeing to guidelines on how it manages its currency.
The agreement, which came during the 13th round of negotiations, will help defuse a prolonged trade fight that has begun inflicting pain on the global economy and was set to escalate next week.
In his quest to force China to acquiesce to the U.S.'s terms, Trump has already taxed US$360bn worth of Chinese products and was poised to tariff virtually all Chinese imports by the end of the year.
The deal is reportedly far from the type of comprehensive deal Trump has been pushing for and leaves many of the administration’s biggest concerns about China’s economic practices unresolved.
But it will provide welcome relief to businesses, farmers, investors and others who have suffered financially from a bitter trade dispute that has dragged on for more than a year.