Australia welcomes US-China trade deal, despite possible costs

Australian farmers could be hit, but trade minister says phase one 'truce' is good for global confidence

China's commitment to buy $200bn of US goods over two years could come at the expense of Australian farmers and energy providers, but the "truce" in the countries' trade war will be a confidence boost for global markets, trade minister Simon Birmingham has said.

"This is welcome news. Australia has long called for a reduction, a cessation of the trade war between the United States and China - it was hurting global economic growth, and so we welcome the fact that this agreement has been signed," he told radio station 2GB.

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