Trump, Xi agree to temporary truce on trade

Trump, Xi agree to temporary truce on trade

Trump, Xi agree to temporary truce on trade

Calling the extended meeting "friendly and candid", State Councilor and Foreign Minister Wang Yi said the two leaders had agreed to open their markets to each other and to step up negotiations toward elimination of all additional tariffs.

"This was an incredible and productive meeting with unlimited possibilities for both the United States and China", Trump said in the statement, released as he flew home from a stormy trip spent accosting his fellow leaders at the world's pre-eminent economic forum.

The communique, issued after their two-day summit in Buenos Aires, also emphasized the importance of reforming the functioning of the World Trade Organization, apparently targeting China's alleged unfair business practices.

Many in Europe have looked to Merkel as Trump has called into question traditional trans-Atlantic ties with his announcements of trade tariffs, repeated criticism of European contributions to NATO and other issues.

The president spoke briefly on Air Force One late Saturday as he left Buenos Aires to return to Washington. "But it is not a ceasefire as some already are touting".

In the short-term, there is no deal just yet - only an agreement by both sides to freeze escalation as it stands today, buying time to work out a possible path. USA agreed to postpone the additional tariffs.

Thaw in China-U.S. relations?

Both sides certainly came prepared for serious discussion.

With this 90-day halt on new tariffs, we are hopeful this comes as a break for farmers and leads to future agreements between the two countries. That increase has now been deferred.

He said: "Xi is a coldblooded calculator of China's - and his own - interests". Keeping tariffs at 10% will mean the drag stays at 0.5 ppt.

There was no immediate statement from either side when the dinner of more than two hours ended in Buenos Aires. At the start of the dinner, Trump struck an optimistic note.

Putin said it was "a pity" that he had not been able to have a proper meeting with Trump at the G20.

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

The White House in turn did not immediately elaborate on any details of the meeting, besides economic adviser Larry Kudlow telling reporters that the dinner went "very well".

Paul Ashworth, chief US economist at Capital Economics, notes that if talks fail, tariffs would rise on the $200 billion of goods already on the receiving end, and would be imposed on the remaining $250 billion that are, so far, penalty-free. But after talks that lasted throughout the night, world leaders finally obtained the support of the US on most issues.

The communique mentioned the brewing trade war between the U.S. and China.

At the same time, Trump again raised with Xi his concern about the synthetic opioid fentanyl being sent from China to the United States, urging the Chinese leader to place it in a "restricted category" of drugs that would criminalize it.

The U.S. leader was coy on Friday even as he noted some positive signs.

"President Trump expressed his friendship and respect for Chairman Kim", it said.

U.S. companies and consumers are bearing part of the cost of the United States tariffs on China by paying higher prices for goods, and many companies have hiked prices on imported goods.

Trump and Xi dined on some local specialties, including grilled sirloin with red onions, goat ricotta, and dates. The exact amount was "not yet agreed upon, but very substantial", according to the White House.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.