Wall street share markets hit a record high on signs of an imminent pause in the trade war between the US and China. Business chiefs who met white house on Thursday hinted that a deal could come this week.
It would avert another round of tariffs that the US was due to impose on China on Sunday.
The President Trump has been meeting his trade advisers and tweeted earlier that the US and China were “very close” to a deal.
“They want it and so do we!” he wrote.
The US has reportedly offered to have tariff rates on about $350 worth of CHines goods, some of which had climbed as high as 25%. IN exchange, China would commit to boosting its purchases of US agricultural products.
However, the so-called phase one deal is not expected to address many of the more difficult issues that triggered the fight, like China’s subsidies broadcaster CNBC after the White House meeting.
The hints of progress sent the main US stock indexes up about 1%.
A deal would deliver a victory to MR, Trump, who is under political pressure, with debate on his impeachment underway in the US Congress.
As described, the potential agreement falls short of what the US initially said were its goals, said Jennifer Hillman, a senior fellow at the Council on Foreign Relations and a former trade official.
“This should not be describer as a trade agreement.” she wrote on twitter.
“It is purchase and sale agreement that does virtually nothing to address substantive concerns of the US with China trade practices.”