• US to modify application of the rate of duty on articles of China
  • This will be for an initial period of 90 days
  • China will also suspend its tariffs on the US for an initial period of 90 days
  • Only a 10% base tariffs rate will be applied
  • A mechanism to continue discussions about economic and trade relations is established
  • These discussions may be conducted alternately in China and the US, or in an agreed third country
  • Both sides may conduct working-level consultations on relevant economic and trade issues
  • Full statement

Risk is ramping up on the headlines here with S&P 500 futures now up by 2.5% on the day. Essentially, the US to cut tariffs on China from 145% to 30%. Meanwhile, China is lowering theirs from 125% to 10%. This will apply for a period of 90 days for now as both sides look to discuss further on how to seek further progress in trade negotiations.

Source: Forex Live