United States on verge of landmark China trade deal

Wall Street touches record high on trade optimism

Traders work on the floor at the NYSE in New YorkMore

"If we can get a deal with China and if markets move, if we can accumulate these trading relationships that we have and we get back to more stable trade relationships, I would be hopeful we would not need a third Market Facilitation Program", said Perdue, using the formal name for the trade war payments.

At the same time, Trump said the 25 percent United States tariffs on Chinese goods will stay in place, while an additional 7.5 percent in planned tariffs won't go ahead as planned.

The US has agreed to suspend tariffs on $160 billion in Chinese goods due to go into effect on 15 December, Trump said on twitter, and cut some existing tariffs to 7.5 percent.

Over the last 20 months, the US has imposed tariffs on $550 billion worth of Chinese imports, while China has reciprocated by implementing tariffs on $185 billion worth of imports from the U.S.

A Beijing-based USA business community official also told Reuters he viewed what was being described more as a "final offer" that has been approved by Trump but not yet affirmed by Beijing.

China was also planning on reinstating tariffs on USA vehicles and auto parts that it had previously suspended.

China says it has reached an agreement with the United States on a "phase one" trade deal.

The negotiation teams of the United States and China have been in talks to resolve the conflict ahead of the impositions of tariffs worth $160 billion by the U.S., which are scheduled to be implemented on Sunday.

"We want to see evidence that things aren't deteriorating and if tariffs are getting delayed or rolled back, that's evidence".

The tariffs slated for this Sunday, though, threatened to be much worse as tens of billions of dollars worth of smartphones, laptops, toys and other consumer goods would have been targeted.

The agreement was announced as the US House Judiciary Committee voted in Washington to charge US President Donald Trump with abuse of power and obstruction during an impeachment inquiry.

Asked specifically about Trump's $50 billion figure, officials in Beijing said Friday that details on value will be disclosed later.

All three major stock indexes hit fresh record highs earlier in the session as Beijing said it had agreed on the context of a trade pact with Washington, but turned lower after comments that a deal had not yet been formally signed.

The administration has reached out to allies on Capitol Hill and in the business community to issue statements of support once the announcement is made, sources told Bloomberg.

The latest development came after weeks of apparent skirmishes over the details of the so-called phase-one deal between the two countries to bring a temporary truce in the trade war that has played out for more than a year. Sens. Chuck Schumer of New York, Ron Wyden of OR and Sherrod Brown of OH called on the president to hold out for "commitments from the Chinese government to enact substantive, enforceable and permanent structural reform".

Trump "has sold out for a temporary and unreliable promise from China to purchase some soybeans", Senate Democratic leader Chuck Schumer said in a statement.

Repeated rounds of negotiations had failed to achieve even a preliminary agreement.

At the conclusion of a high-level economic work conference this week, officials said the Chinese leadership would ensure "reasonable" and "stable" growth in trade and the economy despite "mounting risks and challenges at home and abroad".

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