Washington is providing tariff relief as part of the preliminary deal. Beijing will buy US$40 billion to US$50 billion in American agricultural products, according to U.S. President Donald Trump, who also said the deal includes terms on intellectual property and financial services. A more comprehensive pact could be signed later this year. The Dow Jones rose over 350 points on the news. (Washington Post, Bloomberg, Reuters)
Talking point: This pause in tensions comes a year and a half into a trade war that has roiled the global economy and seen its fair share of false starts and stops. Earlier this week, Bloomberg reported that China was willing to increase purchases of agricultural products but not yet willing to budge on more substantial issues. For his part, Trump has repeatedly said he’d prefer a complete deal over anything partial. Lack of details on what’s been agreed to isn’t stopping the markets. In addition to the Dow Jones rally, the S&P 500 is up, as is the Nasdaq. The SSE Composite Index, one of China’s main exchanges, is closed for the day, but was up about 0.9 per cent at last close.