Ceasefire In Trade War: Are US And China Cutting A $200 Billion Deal?

The trade war between the US and China appears to be nearing an end, at least for the time being. In a tweet late on Monday, President Donald Trump announced to the world that China had “agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products” from the US, hinting that the two had reached a deal.

China’s purchase of additional agricultural products from the US “would be one of the best things to happen to our farmers in many years,” Trump tweeted, adding, "On China, Barriers and Tariffs to come down for first time”.

Trump’s Twitter announcement came just a day after China said that it will “significantly increase purchases” of US goods.

In a joint statement released following the talks last week, the two sides had not given a dollar figure for the increased purchases by China.

However, one of Trump’s top economic adviser has said that Beijing has agreed to cut its annual trade surplus with the US by as much as $200 billion.

"We're putting the trade war on hold. We have agreed to put the tariffs on hold while we try to execute the framework,” US Treasury Secretary said after talks.

China’s Foreign Ministry, however, has denied that it has offered to cut its trade surplus with the US by $200 billion during the talks.