Wall Street and equity markets around the world cheered the news that the U.S. and China have agreed in principle to reduce and then eliminate the additional tariffs that are part of the trade war. The news sent markets higher as investors saw an end to the existing tariffs as well as promised but as yet unlevied tariffs.
The agreement calls for removing the tariffs in phase one of an overall deal, but this part is facing fierce internal opposition at the White House and from outside advisers, multiple sources familiar with the talks said.
The unhappy groups note that the tariff rollback wasn’t part of the deal struck in October between Chinese Vice Premier Liu He and U.S. President Donald Trump.
Chinese officials said earlier Thursday that tariff reductions had been agreed, and a U.S. official confirmed that that was the case.
There is a divide within the administration over whether rolling back tariffs will give away U.S. leverage in the negotiations.