President Donald Trump has signed phase one of a trade deal with China, easing tensions in a trade war that has gone on for nearly two years. The agreement reduces some of the tariffs the U.S. has placed on Chinese goods in exchange for China agreeing to purchase more products from the United States. The deal also includes some protections for U.S. intellectual rights.
"Together, we are righting the wrongs of the past and delivering a future of economic justice and security," Trump said from the East Room of the White House.
Under the agreement, China has agreed to purchase an additional $200 billion in American goods and energy exports. Part of the package includes China pledging to buy $32 billion in agricultural products over two years. The U.S. will reduce some of the tariffs placed on Chinese products, though roughly $375 billion in duties will remain.
President Trump said that he plans to visit China in the near future as the two countries began negotiations on phase two of the trade deal. He said that the tariffs could be reduced as the two countries discuss phase two of the agreement.
News of the deal sent stocks higher. The Dow Jones Industrial Average was up around 100 points, moving above 29,000 and hitting an all-time high. The S&P 500 also hit a record high after gaining nearly seven points, while the Nasdaq was trading about 21 points higher.
Photo: Getty Images