US, China reach partial trade deal to halt tariff hikes, boost agriculture trade

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Highlights

settle more than $1/b higher

says deal will bring up to $50 billion in US farm

US had planned to impose new next week

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Washington —
The US and China reached a partial trade deal Friday that would suspend a US tariff escalation set for next week and increase Chinese imports of US agricultural products.

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The agreement came after President Donald Trump met with Chinese Vice Premier Liu He in the White House. Trump said it was a “substantial phase-one deal” that would boost agricultural trade by $40 billion-$50 billion. He said China promised to make changes to currency management and intellectual property, including forced technology transfer.

The US had planned Tuesday to increase tariffs on $250 billion of Chinese imports to 30%, from 25%.

The year-old trade conflict has had significant impacts across the and shipping sectors, altering trade flows and exerting bearish pressure on the oil market amid concerns of global recession and weak .

Despite the apparent breakthrough, major areas of conflict remain between the two sides.

Trump’s announcement came after oil closed, but signs of a potential deal and a comment by Treasury Secretary Steven Mnuchin earlier in the day pushed higher.

Prompt NYMEX November WTI settled $1.15 higher at $54.70/b, while December settled $1.41 higher at $60.51/b.

Refined products were led higher by NYMEX November ULSD, which settled 3.68 cents higher at $1.9576/gal. November settled 1.55 cents higher at $1.6388/gal.

— Meghan Gordon, meghan.gordon@spglobal.com

— James Bambino, james.bambino@spglobal.com

— Edited by Richard Rubin, newsdesk@spglobal.com

Source: Platts

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