China and the US agreed on gradual tax decrease, which they imposed during a month of trade disputes.
The conclusion of the negotiations from past days was announced by China’s Ministry of Commerce, but there’s no time frame yet. According to Reuters, the deal could apply to taxes which were to be imposed since 15th December. These taxes could affect price of goods in the value of $156 billion dollars, including cell phones, laptops or toys.
Cancellation of the tariffs was a necessary condition to reach any agreement. “The trade disputes began by issuing taxes and therefore must stop by its re-cancellation, “spokesman of China’s Ministry of Commerce Gao Feng said. The amount of cancelled taxes must be beneficial for both parts. The exact items and its numbers will be agreed.
The information of possible end to trade disputes between the US and China brought optimism to financial markets. The indexes on main world stock markets reacted to the news with about one percent increase. All will depend on further negotiations, yet expectations are high.