US President, Donald Trump
WASHINGTON, Dec 14 (NNN-AGENCIES) — Asian stock markets rose on Friday as the US and China moved toward striking a trade deal to avert a new round of tariffs.
The deal could be announced later in the day, after US President Donald Trump reportedly signed off on the terms.
Washington is said to have agreed to remove some tariffs, while Beijing would boost purchases of US farm goods.
However, many of the more difficult issues are still to be addressed.
Optimism surrounding a trade deal pushed Asian markets higher, with Japan’s Nikkei 225 index rising 2.3% while Hong Kong’s Hang Seng put on 2%. The Shanghai Composite added 1.2%.
Earlier, US markets also gained ground with the S&P 500 and the Nasdaq closing at fresh record highs.
“It’s a good starting point,” Chamber of Commerce head of international affairs Myron Brilliant told broadcaster CNBC after meeting with White House officials.
A deal would deliver a victory to Trump, who is under political pressure, with debate on his impeachment underway in the US Congress.
He tweeted on Thursday that the US and China were “very” close to an agreement.
“They want it and so do we!” he wrote.
Previous truces have collapsed and without a formal announcement or presentation of a written agreement, many remained wary.
The US reportedly offered to halve tariff rates on about $350bn worth of Chinese goods, some of which had climbed as high as 25%.
However, the deal is not expected to address many of the more difficult issues that triggered the fight, like China’s subsidies for certain industries.
Trump has repeatedly declared progress toward a deal that would end the trade war, which has seen tariffs imposed on more than $450bn worth of US-China trade and weighed on the global economy.
In October, he announced that the two sides had agreed to terms for a “Phase One” deal, but negotiations dragged on.
Without progress, the US had threatened to impose tariffs on more than $150bn worth of Chinese exports on Dec 15.
Unlike earlier rounds of tariffs, this one was slated to fall largely on everyday items, including smartphones, children’s books, footwear and clothing, heightening the economic stakes, since the US economy is driven by consumer spending. — NNN-AGENCIES
