The long-awaited trade deal could finally be happening.
Topline: U.S. and Chinese negotiators have agreed upon the terms of a phase one trade deal that now only awaits President Donald Trump’s approval, with an official confirmation possible as early as this afternoon, Bloomberg first reported on Thursday.
- The two sides reached an agreement in principle, with Trump set to meet with top trade advisors starting at 2:30 p.m. EST to discuss the agreement, and, Wall Street hopes, give it his stamp of approval.
- Bloomberg’s report sent the stock market surging higher, back near record highs: The S&P 500 and Dow Jones Average are both up by more than 0.70% so far on Thursday.
- The most recent news of trade progress comes amid a flurry of other reports this morning, including from the president himself.
- Trump originally tweeted that the U.S. was “getting VERY close to a BIG DEAL with China” and that both sides want to work out an agreement before the looming December 15 tariff deadline.
- That was followed by a report from the Wall Street Journal soon after, detailing how U.S. negotiators have offered to slash existing tariffs, which cover roughly $360 billion of Chinese goods, by 50%.
- The U.S. is also willing to cancel the next round of China tariffs, planned to take effect on another $156 billion of Chinese goods on December 15, the report said.
Key background: With officials from both sides working tirelessly to hammer out a deal ahead of the looming China tariff deadline, Wall Street cheered the good news on Thursday morning, sending stocks higher. If a deal is struck before the deadline, that will notably de-escalate tensions between the two countries that has endured for months and boost the stock market to end the year on a strong note.
Crucial quote: “At the end of the day, it all comes down to the final details and what gets agreed upon—and that’s still to be determined,” says Mark Freeman, chief investment officer at Socorro Asset Management. “The market is expecting a phase one deal, that much is clear.”
Further reading: Wall Street Hits Record Highs After Reports U.S. ‘Very Close’ To China Trade Deal As Deadline Looms
This is a developing story.