After the thirteenth round of US-China trade talks finished on Friday in Washington, US President Donald Trump said a phase one trade deal was completed that would suspend October tariff hikes on Chinese goods and Beijing agreed to purchase up to $50 billion worth of US agricultural goods.
“We are near the end of the trade war,” said Trump at the end of the negotiations in Washington.
Many analysts contend that nothing is certain, as the US demonstrated by blacklisting Chinese firms and officials before the trade talks even began last week.
In fact, even though Beijing has avoided a five percent tariff hike on a batch of goods worth $250 billion another tax hike is coming around the corner on December 15.
“There is not yet a viable path to existing tariffs declining, and tariff escalation remains a meaningful risk,” stated a report by Morgan Stanley released after the US-China trade negotiations.
Beijing has also been cautious about announcing any kind of breakthrough after the trade talks concluded on Friday.
“While the negotiations do appear to have produced a fundamental understanding on the key issues and the broader benefits of friendly relations, the Champagne should probably be kept on ice,” read a commentary from state-owned publisher China Daily.
“At least until the two presidents put pen to paper, as based on its past practice, there is always the possibility that Washington may decide to cancel the deal if it thinks that doing so will better serve its interests,” it added.