US suspending $250 billion tariff hike on China

The United States is suspending a tariff hike on $250 billion in Chinese imports as the U.S. and China reach a cease-fire in their trade war, The Associated Press reported Friday.

The trade war has lasted 15 months.

China has agreed to buy $40 billion to $50 billion in U.S. farm products as part of the deal.

Other issues, such as allegations over China’s use of trade secrets, will be discussed in later negotiations, the AP said.

The Dow and broader stock market rallied again on Friday after Trump had said the United States and China had reached a preliminary agreement.

Trump, who met with Chinese Vice Premier Liu He Friday afternoon, called the initial deal “substantial.”

Trade has dominated markets once again this week, with stocks rising and falling in lockstep with headlines.

The president said in a tweet earlier Friday that “good things are happening” at the trade meetings and that “all would like to see something significant happen.”

Stocks were sharply higher across the board.

The Dow soared more than 500 points at its peak, but pared some of its gains before the close. The index finished 320 points, or 1.2% higher. The S&P 500 closed up 1.1%, while the Nasdaq Composite finished 1.3% higher.