KEY POINTS

  • President Trump will meet Chinese leader Xi Jinping to sign a "Phase One" trade deal next month
  • The deal will remove some tariffs in exchange for China buying U.S. products
  • The deal is currently undergoing legal review in both countries 

President Donald Trump said Tuesday that he will sign the “Phase One” trade deal with Chinese leader Xi Jinping next month.

“We will be having a signing ceremony, yes,” Trump said, referring to himself and China’s Xi. “We will ultimately, yes, when we get together. And we’ll be having a quicker signing because we want to get it done. The deal is done, it’s just being translated right now.”

The U.S. and China agreed to the trade deal on Dec. 13. The deal means that the Trump administration will not go forward with some of its proposed tariffs on Chinese products, in exchange for Beijing buying billions of dollars worth of U.S. agricultural and manufactured goods. The deal also addresses intellectual property concerns and allows better access to China’s financial markets for U.S. companies. 

The deal will be viewed by lawyers in both countries before it is signed by Trump and Xi next month. 

The U.S. agricultural sector has been hard hit by the trade war, and the U.S. government has had to give a $16 billion financial bailout package to farmers affected by the tensions. Chinese companies have bought fewer U.S. agricultural products during the trade war. 

The Trump administration has touted the trade war as a way to bring back the U.S. manufacturing sector and to prevent Beijing from flooding global markets with cheap goods. U.S. retailers, such as Walmart, have worried about how the trade war will affect their profit margins and have said that they would have to increase prices due to the tariffs.