May 21, 2018
China and the United States reached an initial agreement on trade, following weeks of contentious exchanges. The White House and Beijing said in a joint statement that China will “significantly increase purchases” of U.S. goods.
The agreement helps avert a brewing battle between the world’s two largest economies, with both parties pledging not to engage in a trade war. Though no specific dollar amount was set, President Trump has suggested the annual trade deficit be cut by $200 billion. Last year, the U.S. merchandise trade deficit with China rose to a record $375 billion.
The sides did agree to stop “slapping tariffs’ on each other. The White House said China also agreed to ‘meaningful increases’ in U.S. agriculture and energy exports. The details of the pact will be worked out later, when a U.S. team heads to China.
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