Breaking: Trump announces "substantial phase one deal" with China

The US has come to a "substantial phase one deal” with China in trade negotiations, President, Donald Trump, just announced. This agreement will delay a tariff increase scheduled for next week. US Treasury Secretary, Steven Mnuchin, and Robert Lighthizer – a top trade negotiator – also made some comments on the matter. 

Streaming comments: 

Trump: Have come to substantial phase one deal with China.

• The agreement is a ‘big deal’; It is better to do deal in ‘sections or phases’.
• We have mode progress on tech transfer, more on that in phase 2.
• Also agreed on currency and FX issues.
• Structural AG issues have also been addressed.
• China has agreed to make 40-50bln USD in AG good purchases.
• Will take up to 5 weeks to get deal written.
• Have come to deal on intellectual property, financial services and big AG purchases.
• The currency deal will be of tremendous benefit.
• We are very close to ending trade war.
• To do a formal signing with Chinese pres. Xi
• Signing could happen at APEC Chile 2019 (Nov 16-17).
• Not expecting deal to fall apart over next few weeks, ‘though there is a possibility’ it will.
• Phase 2 of deal to include some IP aspects.
• Discussed Hong Kong.
• Things have toned down there and he thinks that’s going to take care of itself.
• We will look at the blacklist and what companies should be on it.
• Fed should cut rates despite this deal.
• Little doubt that we will be able to finalize this deal.

US Treasury Secretary Mnuchin: We also have almost complete agreement on financial services.

• Have agreement on transparency in FX.
• There may be a Phase Three if we can't get everything done in Phase Two.
• President has approved not implementing Tues tariffs.
• Have a fundamental understanding on the key issues but there is more work to do.
• US will not sign an agreement until it is on paper.
• China’s Liu has to go back and ‘do more work in China’.
• To evaluate whether to rescind China’s FX manipulation designation.

Chinese Vice Premier Liu: making a lot of progress towards a positive direction in US-China economic relationship

• ‘Substantial progress’ made in many fields, to continue to make efforts.

Lighthizer: Not dealing with Huawei in this agreement.

• Trump has not made a decision about Dec tariffs.
• Have only suspended tariffs scheduled for Tuesday 15th Oct.