Published: Mon, December 03, 2018
Markets | By Otis Pena

Trump, Xi agree to temporary truce on trade

Trump, Xi agree to temporary truce on trade

Mr Trump said he hoped they would reach a deal during their dinner in Buenos Aires to defuse trade disagreements and said he believed Beijing wanted this.

The US President had previously planned to raise tariffs on certain Chinese goods to 25 percent on January 1, but revoked this plan as a result of the talks.

Trump and President Xi Jinping met in Buenos Aires, shortly after the annual summit of the world's leading economic powers concluded with a watered-down statement described by one G20 expert as the "lowest common denominator" of global diplomacy.

Beijing, too, will hold off on escalating in the meantime with retaliatory action, working instead to purchase what the White House has said will be a "very substantial" amount of USA goods in the agricultural, energy, and industrial sectors.

The Republican president called their agreement - which Washington hopes will help close a yawning trade gap with the Asian giant and help protect U.S. intellectual property - an "incredible" deal.

Trump, speaking to reporters on Air Force One after the plane departed Argentina, said his agreement made over dinner with Xi, will go down "as one of the largest deals ever made".

"China's trade and investment practices have prevented USA companies from competing on a level playing field and hurt US workers".

"The faster negotiations conclude, the faster USA producers can provide more Japanese consumers with the high-quality beef they demand", Kester said.

Investors have been eager for signs of a progress toward keeping an already costly trade dispute from spiraling into a new and broader cold war.

The announcement that auto tariffs on US-made cars is another concrete step towards what Larry Kudlow, Trump's top economic adviser, has said is the goal of no tariffs or non-tariffs barriers between the two countries.

"The ceasefire is a win-win situation, an excellent outcome". China would also buy agricultural products from U.S. farmers immediately. The U.S. firm has said it will cut prices to absorb more of the tariffs and is building a local plant in Shanghai.

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Samsung itself is known to have invested around $ 150 billion won over six years to develop the critical display technology. The same Samsung flexible display technology is also coming to the company's latest folding smartphone/tablet concept.

The two leaders agreed to expand cooperation based on reciprocity and mutual benefit and manage differences based on mutual respect, so as to jointly advance China-U.S. relations with coordination, cooperation and stability as the defining features.

The United States has imposed 25 percent tariffs on another $50 billion worth of Chinese imports and they remain in effect despite the truce. That increase has now been deferred.

Under the CPTPP - a pact from which Trump withdrew the United States last year - Japan's 38.5 percent tariff on beef imports will be lowered in stages to 9 percent over 16 years. Keeping tariffs at 10% will mean the drag stays at 0.5 ppt.

"China will be buying massive amounts of product from us", Trump said after the talks. Boot noted that Trump even said something appropriate when he was told former President George H.W. Bush had died.

"And I look very much forward to the dinner".

Major U.S. automakers said they were unaware of the lower tariffs on exports to China.

Trump had warned that a disappointing outcome could prompt more US tariffs.

He gave no further details and there was no immediate response from the Chinese government.

The dinner was moved up by about an hour after US leader's schedule opened up on Saturday.

However the United States trade representative, Robert Lighthizer, said he would be surprised if Mr Trump's working dinner with Mr Xi "wasn't a success".

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