US Treasury Secretary Stephen Mnuchin announced that the first-stage trade agreement between Washington and Beijing will be signed today, which will halt the escalation of the trade dispute between the two largest economies in the world.
The US Treasury Secretary said that the documents for the trade agreement will be announced on Wednesday, indicating that the first stage will be fully enforceable, including a pledge by China to refrain from manipulating its currency.
He added that US President Donald Trump will today sign the first-stage agreement with Chinese Vice Prime Minister Liu He at a ceremony at the White House.
He explained that China pledges to purchase additional US goods and services worth 200 billion dollars over the next two years under this agreement, noting that American companies and farmers may reap more gains once dealing with structural reforms in the second stage agreement.
The US Treasury Secretary indicated that his country will maintain the duties imposed on Chinese goods until the completion of the second phase of the agreement between the two countries.
He told reporters on Tuesday that Trump might consider easing tariffs if the world’s two largest economies move quickly to strike a subsequent deal. He added, “If the president reaches an agreement for the second stage quickly, he will consider reducing the fees within the framework of stage 2.”