The US-China trade war probably ends. Both sides managed to agree on first phase of trade deals.
The agreement needs signing of American president Donald Trump, yet that’s said to be only a formality for now. The US will not impose more taxes on China’s goods which should have started since 15th December. The taxes would affect Chinese production in the value around $160 billion.
Donald Trump also suggested that taxes on goods in value of $360 billion cut in half. In exchange for that China committed to subscribe American goods of $40 billion, yet Trump’s idea was $50 billion. Nevertheless, Americans managed to agree on more favorable yet unspecified conditions for agricultural production to approach China’s market.
Financial markets happily welcomed the news when the US stock market indexes reacted by increasing in 0,5 % – 1%. We may expect that the optimism will spread to other world stock markets and will remain at least until the end of business week.