Agree to temporary truce on new auto tariffs

Randal Sanchez
December 6, 2018

In a separate tweet Monday, Trump described his Saturday meeting with Chinese President Xi Jinping at the Group of 20 summit in Argentina as "extraordinary", saying "relations with China have taken a BIG leap forward!"

"While the Xi-Trump dinner has clearly improved the tone of the U.S".

The White House statement said China had agreed to purchase a "very substantial" amount of American products, including "agricultural product from our farmers immediately".

Trump went on to praise what he said was his "very strong and personal relationship" with Xi.

Xi and Trump agreed to "have further exchange of visits at an appropriate time", Wang said.

President Donald Trump left his top advisers scrambling on Monday to explain a trade deal he claimed he'd struck with China to reduce tariffs on US cars exported to the country - an agreement that doesn't exist on paper and hasn't been confirmed in Beijing.

The deal prevents an escalation on USA tariffs on $200 billion worth of Chinese goods, keeping the penalty at 10 percent instead of hiking to 25 percent January 1.

The new pact, baptised the US-Mexico-Canada Agreement (USMCA), even has a provision that essentially forbids any free trade deals between its signatories and Beijing.

Mr. Trump provided no details of how much of a reduction China had agreed to, and Beijing did not immediately confirm that any deal had been reached to readjust the harsh tariffs, which were brought into effect in July amid an escalating trade war.

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China responded by imposing its own tariffs.

Global stock markets have jumped following the truce in the US-China trade war.

Mnuchin said for the first time there was "a clear path" to reduce the USA trade deficit with China to zero. China would also buy agricultural products from USA farmers immediately.

Earlier this year, China's tariff's on US imported automobiles stood at 15 percent from 25 percent, Politico reported.

If the two sides can not reach agreement over these matters within the next 90 days, the United States will raise tariffs. The US spent 716 Billion Dollars this year.

Both farmers and the auto industry have been struck in the trade war, as the U.S. and China hit each other with escalating tariffs.

Larry Pizzi, president and head of sales at Accell North America, said, "I am pleased by the postponement of the additional 15 percent tariff increase imposed on (non-electric) bicycles and bicycle parts and accessories, and remain hopeful that this 90 day stay will ultimately prevent the incremental tariff and net positive results for American consumers and the US bicycle industry".

The two leaders, who were in Buenos Aires for a summit of the G20 countries, called it "a highly successful meeting", a White House statement said. If negotiations fail, Trump says he will impose the tariff increase. Despite the positive talks so far, these policies will likely cause the most issues nearing the 90-day deadline.

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