USA agrees to suspend new China tariffs for 90 days

USA agrees to suspend new China tariffs for 90 days

USA agrees to suspend new China tariffs for 90 days

The White House said that if an agreement on trade issues including technology transfer, intellectual property, non-tariff barriers, cyber theft and agriculture has not been reached with China in 90 days that both parties agree that the 10 per cent tariffs will be raised to 25 per cent.

China's Vice Commerce Minister Wang Shouwen said that China and the USA also decided not to impose new tariffs on other products.

As part of the deal, China agreed to start purchasing agricultural products from USA farmers immediately, the White House said. Both the China and USA have placed a 90 day timeframe on completing a deal.

Meanwhile Wang Xiaolong, director general of the Foreign Ministry's department of worldwide economic affairs, said negotiations between Chinese and USA officials were making some progress.

The two sides also agreed to enhance cooperation on law enforcement and combating illicit drugs, including the synthetic drug fentanyl, Wang said.

Ahead of the G-20, the USA planned to increase tariffs on $200 billion in Chinese goods from 10% to 25%, effective January 1.

China will import more marketable products form the United States in efforts to gradually ease imbalances in the two-way trade, said Wang.

Western businesses routinely say that Beijing's reform promises are not worth the paper they are printed on, accusing China's government of perpetually delaying substantive reforms or actively backsliding.

Trump, as often in his diplomatic dealings, appears to consider his personal chemistry with Xi the most important factor in the success of the negotiations.

At the dinner in Buenos Aires, where the two leaders were attending the G20 summit, Mr. Trump agreed to a 90-day delay of tariff increases originally set for January 1.

The closely watched encounter came shortly after the Group of 20 industrialized nations backed an overhaul of the global body that regulates worldwide trade disputes, marking a victory for Trump, a sharp critic of the organization.

But one thing is clear-the stakes in the negotiations between the US and China are huge.

Berthold Kuhn, a China expert with the Free University of Berlin, noted that the meeting was "a first step" toward the settlement of China-U.S. trade disputes and more time is still needed for negotiation.

The declaration said the multilateral trading system is now falling short of its objectives and there is room for improvement. "It is my great honour to be working with President Xi".

China has targeted $110 billion worth of U.S. imports for tariffs.

"I hope they understand that", he said.

President Trump stated: "This was an unbelievable and productive meeting with unlimited possibilities for both the United States and China". Xi also agreed to designate Fentanyl, which has been one of the drugs driving the opioid crisis in the USA, as a Controlled Substance.

The White House said Xi, "in a wonderful humanitarian gesture", had agreed to designate fentanyl a controlled substance.

Wang said the two sides also agreed to open market to each other and China will, in the process of its further opening-up, work to gradually resolve the legitimate United States concerns.

Along with President Trump, in attendance at the dinner on the USA side of the table were Secretary of State Mike Pompeo, Treasury Secretary Steven Mnuchin, White House Chief of Staff John Kelly, National Security Adviser John Bolton, Trump adviser and son-in-law Jared Kushner, and the president's top economic adviser Larry Kudlow.

"We're encouraged to see Presidents Trump and Xi working together to reduce trade barriers between the United States and China", the Consumer Technology Association, a U.S. trade group that opposes tariffs, told The Wall Street Journal.

The G20 communique was finally adopted after all-night haggling by negotiators ensured that the summit in crisis-hit Argentina at least finished with a joint platform, unlike recent G7 and Asia-Pacific summits where Trump's objections caused unprecedented breakdowns.

Among those at the table for the United States: Trade policy adviser Peter Navarro, seen as the most hawkish member of Trump's team when it comes to economic issues with China.

Exports of Fentanyl from China became the latest source of friction between the two countries as it has emerged as a new source of drug abuse in the U.S. in addition to heroin, resulting in large scale deaths of American youth. The stock market has wobbled this year amid those concerns, and would probably sink if Trump went from 10% tariffs to 25%. The European Union is also pushing for sweeping changes to how the WTO operates.

The two world leaders met last night for a dinner meeting to discuss trade at the sidelines of the Group of 20 leaders' summit. Christine Lagarde, managing director of the International Monetary Fund, said Saturday that "trade tensions have begun to have a negative effect" and are increasing the risk that growth will disappoint.

A Chinese state media report said that the meeting had reached "an important consensus", pointing out "the direction for Sino-US relations in the near future". For example, the Trump administration's concerns about China's alleged theft of United States intellectual property remain in place and Beijing's broader push for indigenous advances in its hi-tech sector under the aegis of the "Made in China 2025" initiative have yet to be addressed.

The final communiqué of the G20 summit, which was held in in Buenos Aires, Argentina, confirmed that the summit will be held next year in Japan, while Saudi Arabia will host the summit in 2020.

Saudi Arabia's de facto ruler arrived amid controversy over the killing of Saudi journalist Jamal Khashoggi, though Saudi officials have said the prince had no prior knowledge of the murder.

Related news

[an error occurred while processing the directive]