A Trade War Truce? : The Indicator from Planet Money The Trump administration announced it would hit the brakes on a new set of tariffs that were set to go into effect on Dec. 15. Could it be the start of a détente in the ongoing trade war?

A Trade War Truce?

A Trade War Truce?

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President Trump and Chinese President Xi Jinping at the G-20 Summit in Osaka, Japan, on June 29. The two countries have reached a "phase one" trade deal. Sheng Jiapeng/Visual China Group via Getty Images hide caption

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Sheng Jiapeng/Visual China Group via Getty Images

President Trump and Chinese President Xi Jinping at the G-20 Summit in Osaka, Japan, on June 29. The two countries have reached a "phase one" trade deal.

Sheng Jiapeng/Visual China Group via Getty Images

The ongoing trade war between the U.S. and China may have reached a tentative cease-fire. As part of a "phase one" deal, the Trump administration says it will suspend tariffs on $160 billion in Chinese imports that were set to take effect this weekend and scale back other tariffs it had introduced earlier in the year. In return, China will buy more American products and has agreed to unspecified "structural changes" to its economy.

Could this be the first sign of a trade war truce? We put the question to Chad Bown, senior fellow at the Peterson Institute for International Economics and host of the podcast Trade Talks.

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Correction Dec. 14, 2019

A previous photo on this page featured a photo of President Trump with Prime Minister Shinzo Abe of Japan rather than Chinese President Xi Jinping.