US, China agree not to raise tariffs on Chinese goods

Posted December 06, 2018

"Both sides avoided the worst-case scenario".

Many U.S. importers of Chinese bike goods have been hustling since this spring to move production out of China, either to other low-priced Asian countries or to the U.S. But in many cases, manufacturers said such moves can take years to complete. Despite the positive talks so far, these policies will likely cause the most issues nearing the 90-day deadline. "I'm taking President Xi at his word, at his commitment to President Trump".

But Mnuchin said, "I think there's no question the president's tariff strategy has worked".

Left out of Chinese media statements is the US claim that a tariff deal is conditioned on the two countries resolving key issues within 90 days. Trump framed canceling NAFTA as a way to force legislators' hands. "Both parties agree that they will endeavor to have this transaction completed within the next 90 days".

The announcement comes a day after Trump sat down with Chinese President Xi Jinping at the G20 Summit in Buenos Aires, Argentina for negotiation talks and dinner.

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But in Chinese coverage, there was no mention of a deadline, instead painting the news as a indefinite halt while negotiations continued.

The actual substance of the deal was also very different depending on whose assessment you read.

Additionally, the USA 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.

China has agreed to start purchasing agricultural products from our farmers immediately.

He did not provide a new level for the Chinese tariffs, and Beijing did not immediately confirm the statement. "It's risky. There's certainly no guarantees that it will produce the outcomes that we want".

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In September 2017 it was $34.5 billion, and in 2016 it was $32.5 billion. The European Union is also pushing for reform at the WTO.

Prior to having dinner with Trump, Xi said he was "very happy" to have an opportunity to address issues with the U.S. leader.

"With Trump himself having personally negotiated the latest deal, this one has a much greater chance of leading to a lasting truce", he wrote in a research note.

A ceasefire is better than an escalating trade war as far as investors are concerned. Leading the rise were big-name tech companies that would've been subject to more tariffs in January, with Apple gaining 2.2 percent.

Xi and his team were likely pushing hard for an end to the tariffs that some analysts have said are partly responsible for slowing China's economic growth and leading global businesses to consider pulling manufacturing out of the country. White House economic adviser Larry Kudlow said that the meeting went "very well" in a brief comment to reporters as the Trump delegation left Buenos Aires for Washington.

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Trump claimed the meeting with Chinese President Xi Jinping at the G20 summit in Argentina over the weekend resulted in a big improvement in relations with China.