Trump announces "phase one" trade deal reached with China

The U.S. has reached a preliminary trade deal with China, President Donald Trump announced, CBS reports.

As part of the deal, China has agreed to some intellectual property protections and will step up U.S. agricultural purchases. In return, the U.S. will suspend a tariff hike scheduled for October 15 on roughly $250 billion in Chinese imports. 

No decision has been made about whether to proceed with another round of U.S. tariffs on Chinese imports, mostly consumer goods, slated to take effect on December 15, U.S. Trade Representative Robert Lighthizer told reporters.

The White House said the two sides made some progress on the thornier issues, including China's lax protection of foreign intellectual property. But more work will have to be made on key differences in later negotiations, including U.S. allegations that China forces foreign countries to hand over trade secrets in return for access to the Chinese market. The deal also does not address Huawei, the Chinese telecom giant that has been blacklisted by the U.S.

Mr. Trump said the deal would result in an additional $40 billion to $50 billion in farm purchases by China. 

So far the agreement is in principle only. The deal will take three to five weeks to put on paper, officials said. And despite the ceasefire, a broader trade deal faces significant obstacles, according to analysts with Eurasia Group, a political risk consultancy.