US,China agree to abondon any trade war & back off from imposing tariffs on each other

US and China have agreed to abandon any trade war and back off from imposing tariffs on each other. After lengthy second round of talks in Washington, the two sides issued a joint statement early yesterday vowing not to launch a trade war against each other. 

The announcement comes after months of increasing tensions that have set markets on edge over fears of a damaging trade war. Vice-Premier Liu He, who led Chinese negotiators said the two sides reached a consensus not to fight a trade



war and will stop increasing tariffs on each other.

US delegation was led by Treasury Secretary Steven Mnuchin. The sides had met earlier in Beijing. An earlier joint statement issued in Washington said Beijing will significantly increase its purchases of American goods.

US President Donald Trump had threatened punitive measures against Chinese goods if Beijing does not cut down the trade deficit.