US and China ‘agree terms’ to avert trade war escalation

US stock markets have surged after Donald Trump tweeted his administration was “very close” to securing a trade pact with China.

The president, who has raised market hopes of an end to his trade war with the world’s second-largest economy several times before- only for expectations to be dashed – sent the message just after markets had opened on Wall Street.

He tweeted: “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”.

Mr Trump’s tweet will be widely seen as confirmation the US is unlikely to escalate the dispute, which has raged since the summer of 2018, by imposing tariffs on nearly $160bn worth of Chinese consumer goods from Sunday.

The post was credited with pushing the S&P 500 Index to fresh highs in early share dealings while the Dow Jones Industrial Average was 0.5% up.

Mark Gibson

Graduates in Northwestern University, Evanston, Illinois 1990. Move to Los Angeles California in 2004. Specialized in Internet journalism.

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