Trump Touts Benefits of China Trade Truce for U.S. Farmers

Trump Touts Benefits of China Trade Truce for U.S. Farmers

US President Donald Trump said Monday he had had an "extraordinary" meeting with Chinese leader Xi Jinping in Argentina.

Mr Trump's tweet did not give any further detail about the tariff cuts, such as when the deal had been reached or a new level for the Chinese levies.

President Donald Trump Monday said that America's relationship with China has taken a "BIG leap forward" and he was willing to have a trilateral discussion involving Russian Federation to reduce the arms race, a day after his meeting with President Xi Jinping on the sidelines of the G20 Summit in Argentina.

President Trump and Xi Jinping have now agreed to a temporary truce in the bitter dispute.

This year Trump imposed an import tax of 25 percent on $50 billion in Chinese products, then hit an additional $200 billion worth of goods with 10 percent tariffs. But it added a 25 percent tariff on USA cars as trade tensions soared, bringing them to 40 percent.

China has agreed to reduce and remove tariffs on cars coming into China from the U.S. now the tariff is 40%.

Those 10 percent tariffs were scheduled to ratchet up to 25 percent on January 1 if the US and China failed to reach an agreement to at least postpone that move.

According to a statement from the White House, China will purchase a "very substantial" amount of agricultural, energy, industrial, and other products to reduce the bilateral trade imbalance.

China agreed to resume purchases of some United States farm and energy commodities.

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Stein added that he is "surprised" to see Xi's positive message on the deal between Qualcomm and NXP Semiconductors, but he still worries about the longer-term situation for chipmakers given that the current 10% tariffs have already hurt demand and the result of the discussion on non-tariff barriers remains unclear.

"There was a significant commitment from both leaders on what needs to be done over the 90 days and instructions to both teams to negotiate and turn this into a real agreement with specific action items, deliverables and time frames", Mnuchin said. China is willing to absorb economic losses in exchange for standing firm on issues vital to the national interest.

The news comes as Trump mulls a tariff hike on vehicles imported from the European Union.

Trump, at his political rallies and news conferences, often praises the increase in US military spending during his almost two years in the White House.

German carmaker BMW and Ford's Lincoln brand have also been hit hard by the tariffs with some of their cars made in the USA for the Chinese market.

USA stock indexes also opened sharply higher in NY at the start of a new work week, with the widely watched Dow Jones Industrial Average of 30 key stocks ahead more than 1.5 percent.

Additionally, the U.S. had previously threatened to slap tariffs on all remaining Chinese exports if no progress was made at the G20 meetings, which would amount to new tariffs on approximately US$267 billion worth of products.

According to the agreement, the U.S. and China will not increase or introduce new tariffs for 90 days. "I don't agree with that", he said.

The BBC's Stephen McDonell reports that China "has pretty much given up nothing in this deal because the future tariffs threatened from the Beijing side were retaliatory in nature and only to be applied if the United State escalated".

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