Agreement prevents new tariffs on Chinese goods
WASHINGTON, D.C. (KYMA, KSWT, KECY/NBC News) - President Donald Trump announced Friday his administration has reached a new trade deal with China.
"That's going to be one of the great deals ever. IT's gonna ultimately lead to the opening of China. Which is something that is incredible ... " said Trump.
Those on both sides of the negotiation refer to the agreement as "phase one," with most of the specific details to be worked out. Critics and financial analysts say it will be hard to tell if the agreement will be good for the U.S. until the details are revealed.
Still, China's making it's priority clear.
"Removing tariffs is a core concern of China in the trade consultation." said the Chinese Vice Minister of Finance, Liao Min.
The agreement puts a 15-percent tariff on Chinese good on hold. It was scheduled to kick in Sunday.
"Had those gone into effect, I think, we'd have a calamitous end to the year." said Jim Lebenthal, a CNBC Contributer.
Beyond the forestalling of tariffs, little is known about the deal. There's no word on intellectual property protections for American companies operating in China. Nor are there any details on the status of government subsidies for Chinese companies.
We do know the Chinese have agreed to buy more food, like soybeans and pork, from the U.S. However, we don't know exactly how much more they intend to spend.
More information should be available once "phase two" begins. President Trump wants those negotiations to start "immediately."
Following today's news the Dow Jones Industrial Average closed up by more than three-percent.