President Donald Trump and China’s President Xi Jinping have agreed to suspend new trade tariffs for 90 days to allow for talks, the White House announces.
At a post-G20 summit meeting in the Argentine capital, Buenos Aires, President Trump agreed not to boost tariffs on $200 billion of Chinese goods from 10% to 25% on January 1.
China will buy a “very substantial” amount of agricultural, industrial and energy products, the US says.
Meanwhile, China says the two sides agreed to open up their markets.
It was the first face-to-face meeting between President Trump and President Xi since a trade war erupted earlier this year.
The dispute broke out after President Trump complained China was doing nothing to cut its large surplus in bilateral trade.
At the summit in Buenos Aires on December 1, the G20 leaders agreed a joint declaration that notes divisions over trade but does not criticize protectionism.
Presidents Trump and Xi held a “highly successful meeting”, the White House said in a statement.
The White House says the US tariffs on Chinese goods will remain unchanged for 90 days, but warns: “If at the end of this period of time, the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent.”
The US says China agreed to “purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other products from the United States to reduce the trade imbalance between our two countries”.
According to the White House, both sides also pledged to “immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft”.
President Trump said earlier this year he wanted to stop the “unfair transfers of American technology and intellectual property to China”.
According to the US, China has also signaled it will allow a tie-up between two major semiconductor manufacturers which Chinese regulators have been blocking.
The White House statement said China was “open to approving the previously unapproved Qualcomm-NXP deal”.
The US also says China agreed to designate Fentanyl as a controlled substance. The opioid – much of it thought to be made in China – is driving a huge rise in drug addiction in the US.
Both sides have imposed tariffs on billions of dollars’ worth of goods. The US has hit $250 billion of Chinese goods with tariffs since July, and China has retaliated by imposing duties on $110 billion of US products.
President Trump had also said that if talks in Argentina were unsuccessful, he would carry out a threat to hit the remaining $267 billion of annual Chinese exports to the US with tariffs of between 10 and 25%.
Chinese stock markets, which have struggled recently amid the escalating trade dispute between the US and China, traded down slightly on July 16.
The US slapped tariffs on $34 billion of Chinese goods on July 6, opening the way for a tit-for-tat trade war with the world’s second-largest economy.
China retaliated, saying the US had launched the “largest trade war in economic history”.
Last month, China’s monthly trade surplus with the US hit a record high of nearly $29 billion as exports to America remained strong.
President Donald Trump recently suggested that more than $500 billion of Chinese goods could be hit by tariffs. That is almost equal to the value of China’s entire goods exports to the US in 2017.
President Donald Trump has threatened $100 billion more in China tariffs, in an escalation of a tense trade stand-off.
These would be in addition to the $50 billion worth of US tariffs already proposed on hundreds of Chinese imports.
The president’s proposal comes after China retaliated to that by threatening tariffs on 106 key US products.
The tit-for-tat moves have unsettled global markets in recent weeks.
According to analysts, a full blown trade war between the US and China would not be good for the global economy or markets – and that ongoing behind-the-scenes negotiations between the two giants were crucial.
However, market reaction in Asia trade on April 6 suggested investors were not too troubled by the latest twist, and that trade war fears were somewhat exaggerated.
In China, Hong Kong’s Hang Seng was in positive territory, up 1.3%. Japan’s benchmark Nikkei 225 was also trading higher in the afternoon session.
The US announced it would impose import taxes of 25% on steel and 10% on aluminum. The tariffs would be wide ranging and would include China.
China responded this month with retaliatory tariffs worth $3 billion of its own against the US on a range of goods, including pork and wine. The Chinese government said the move was intended to safeguard its interests and balance losses caused by the new tariffs.
Meanwhile, there had been rumblings the US was preparing to slap between $50 billion and $60 billion worth of tariffs on Chinese-made goods in response to unfair Chinese intellectual property practices, such as those that pressure US companies to share technology with Chinese firms.
The draft details of those import taxes were released last week when the US set out about 1,300 Chinese products it intended to hit with tariffs set at 25% worth some $50 billion.
China responded swiftly by proposing retaliatory tariffs, also worth some $50 billion, on 106 key US products, including soybeans, aircraft parts and orange juice. This set of tariffs was narrowly aimed at politically important sectors in the US, such as agriculture.
On April 5, President Trump’s branded that retaliation by Beijing as “unfair”.
In a statement, he said: “Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers.
“In light of China’s unfair retaliation, I have instructed the USTR (United States Trade Representative) to consider whether $100 billion of additional tariffs would be appropriate… and, if so, to identify the products upon which to impose such tariffs.”
The president said he had also instructed agricultural officials to implement a plan to protect US farmers and agricultural interests.
China has initiated a complaint with the World Trade Organization (WTO) over the US tariffs, in what analysts say is a sign that this will be a protracted process.
The WTO circulated the request for consultation to members on April 5, launching a discussion period before the complaint heads to formal dispute settlement process.
Meanwhile, under US law, the proposed set of tariffs against about 1,300 Chinese products must now go under review, including a public notice and comment process, and a hearing.
The hearing is scheduled at the moment for May 15, with post-hearing filings due a week later.
China has hit back with new tariffs of up to 25% on 128 US imports, including pork and wine, after President Donald Trump raised duties on foreign steel and aluminum imports in March.
The new tariffs affecting some $3 billion of imports kick in on April 2.
The Chinese government said the move was to “safeguard China’s interests and balance” losses caused by new US tariffs.
Beijing had previously said it did not want a trade war but would not sit by if its economy was hurt.
However, President Trump has insisted that “trade wars are good”, and that it should be “easy” for the US to win one.
The president has already announced plans for further targeted tariffs for tens of billions of dollars of Chinese imports.
President Trump said that is in response to unfair trading practices in China that affect US companies but it raises the possibility of yet more action being taken in what has become a tit-for-tat trade battle.
US scrap aluminum and frozen pork will be subject to a 25% additional tariff – on top of existing duties.
Several other American foods including nuts, fresh and dried fruit, ginseng and wine will be hit by a 15% increase.
Rolled steel bars will likewise see a 15% rise in duties.
According to the Chinese government, the new tariffs were a retaliatory measure in light of President Trump’s decision to raise duties on steel and aluminum imports.
However, further tax hikes may lie ahead.
On March 22, the US said it was planning to impose duties on up to $60 billion of Chinese imports and limit its investment in the US, in retaliation for years of alleged intellectual property theft.
The White House said it was acting to counter unfair competition from China’s state-led economy.
This website has updated its privacy policy in compliance with EU GDPR 2016/679. Please read this to review the updates about which personal data we collect on our site. By continuing to use this site, you are agreeing to our updated policy. AcceptRejectRead More
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
