US reaches 'trade deal in principle' with China

American and Chinese negotiators have agreed in principle to the "phase one" trade deal, a source familiar with the talks told CNN on Thursday.

Donald Trump's trade team was due to brief the President on the agreement during a mid-afternoon meeting at the White House. He will need to sign off on the plan before it's final.

Trump had already announced the broad contours of the "phase one" deal in October, and the two sides have been haggling over specifics since then. The "phase one" deal does not address the major structural changes to China's economy that Trump has sought.

The terms of the agreement include a delay in new tariffs on $160 billion in Chinese-made consumer electronics and toys scheduled to go into effect on December 15, as well as a reduction by half of some existing US tariffs, a second person familiar with the deal was quoted as saying.

According to the deal, China, in exchange, has further promised to purchase US agricultural products. China has made similar pledges in past negotiations but has mostly failed to follow through on large purchases.

The progress with China comes days after Trump reached a deal with congressional Democrats on his revised trading pact with Mexico and Canada, fulfilling two big priorities he campaigned on in 2016.

The breakthrough with Beijing comes weeks after intense negotiations between the world's two economic superpowers resumed in October.

Earlier in the day, Trump hinted that progress was being made between both sides, tweeting,

"Getting VERY close to a BIG DEAL with China. They want it and so do we!"

The optimistic tone was a contrast from more than a week ago when the President suggested he liked the idea of waiting until after the 2020 election.

"I have no deadline," Trump told reporters in London.