It looks like the trade war may be cooling off again.

Just the other day, the U.S. and China agreed to the first phase of a trade deal that will not delay tariffs set for next week.

Reportedly, the deal will address intellectual property and financial concerns, along with Chinese purchases of $40 billion to $50 billion worth of agricultural products.  In addition, the U.S. will not raise tariffs from 25% to 30% by October 15.

President Trump also suggested the agreement could be signed, as early as November 2019, when he and Chinese President Xi Jinping are in Chile for the Asia Pacific Economic Cooperation meetings.  Negotiations for the second phase of the agreement will reportedly commence once the first phase has been signed.

The Top Beneficiaries of Cooling Tensions

If all goes according to plan, some of the biggest stock beneficiaries – with the biggest revenue exposure to China - include Baidu (BIDU), Alibaba (BABA), Cummins (CMI), Deere (DE), Honeywell (HON), and Qualcomm (QCOM).

Tariff-sensitive retailers should benefit as well.

Some of the biggest retailers with the most exposure include Floor & Décor Holdings (FND), Restoration Hardware (RH), Advance Auto Parts (AAP), Five Below (FIVE), and Bed Bath & Beyond (BBBY).

In addition, President Trump says that Deere (DE) could benefit.

“So, I suggest farmers would have to go immediately buy more land and get bigger tractors. They will be available in John Deere and a lot of great distributors,” Trump said, as quoted by CNBC. That’s because China would step up purchases of U.S. agricultural products by $40 billion to $50 billion, which is “three times what China has purchased highest point so far.”

These are just a few of the top stocks with the most exposure to the trade war issues.

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