ibusinesslines.com December 16, 2018

US, China agree to halt new tariffs for 90 days: White House

03 December 2018, 04:39 | Erica Roy

US and China 'will impose no new tariffs'

Donald Trump hails 'amazing and productive' talks, as US agrees to suspend new China tariffs for 90 days

The US, which has already slapped tariffs on $250 billion of Chinese products, has also threatened Beijing with an additional $267 billion in levies unless China shows a willingness to close the massive trade deficit.

Trump and Chinese President Xi Jinping agreed to halt new tariffs during talks in Argentina on Saturday, following months of escalating tensions over trade.

Analysts cautioned on Monday that the trade deal may have only bought some time for more wrangling over deeply divisive trade and policy differences, and said China's economy would continue to cool regardless under the weight of weakening domestic demand.

President Trump teased automakers in the USA and worldwide late Sunday with a characteristically minimalist announcement of China's apparent intention to ease its 40 percent import tariffs on US -made cars.

China has hit back with similar tariffs on $110 billion worth of goods made in the US.

The tariffs were also imposed to try and force China to make changes to their economic practices, specifically the theft of U.S. intellectual property. That's piled pressure on auto companies that have relied on the country for growth amid declining vehicle sales in the U.S.

There was also caution from the US business community.

The move, if realized, would bolster US carmakers who were hit hard when China ramped up levies on USA -made cars in July as part of a broad package of retaliatory tariffs amid the sprawling trade war between Washington and Beijing.

"It's great the two sides took advantage of this opportunity to call a truce", Andy Rothman, an investment strategist at Matthews Asia who specializes in China, told AP.

The two leaders also exchanged views on the Korean Peninsula situation and other major global and regional issues. "This changes the tone and direction of the bilateral conversation". Trump framed canceling NAFTA as a way to force legislators' hands.

Mr Trump had earlier said the pair shared a "very special" relationship.

What is mentioned by both sides is China's agreement to more strongly control the trade in the opioid Fentanyl.

Some lawmakers have criticized Trump for his tough trade talk and actions toward China, including his tariffs and threats of imposing up to $256 billion more in such sanctions if no deal could be reached.

BMW rallied the most in more than three years while Volkswagen amd Daimler also advanced.Chinese carmaker shares pared gains, while shares of auto dealerships in China and Hong Kong rallied on Trump's tweet.

"China agreed to increase imports from the US", Zhang said.

"It's 90 days. It's nothing and it doesn't really make any difference".

USA company Tesla saw its sales drop with the higher prices this fall and recently said it would absorb some of the higher tariff costs and no longer pass them on to consumers.

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

"One can not help but see a dishonest competition increasingly taking the place of honest dialogue based on equality among states", Putin told leaders of emerging economies as the summit opened in Buenos Aires.

Growing concerns that the trade war will increasingly hurt corporate earnings and the USA economy are a key reason why US stock prices have been sinking this fall. China agreed to resume purchases of some USA farm and energy commodities.

He gave no further details and there was no immediate response from the Chinese government. That means the death penalty, by the way, but anyhow, here's what China's Foreign Ministry said, again more vaguely: "China has chose to list all the fentanyl-like substances as controlled substances and start working to adjust related regulations".

China nixed the proposed takeover earlier this year, citing antitrust concerns, after US and European regulators approved the deal.

Beyond trade, Washington and Beijing find themselves increasingly entangled on hard-to-resolve issues.

The two countries signed 30 trade and financial agreements in total. He said lawmakers can choose between the replacement, the United States-Mexico-Canada Agreement, or nothing.

US President Donald Trump (R) and China's President Xi Jinping (L) along with members of their delegations, hold a dinner meeting at the end of the G20 Leaders' Summit in Buenos Aires, on December 01, 2018.

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

"Both parties agree that they will endeavor to have this transaction completed within the next 90 days".

But other lawmakers sounded alarms as Trump headed for the G-20 summit, warning him to resist the benefits of what they are concerned might be a "meaningless" pact with Xi.

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

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United States and China 'will impose no new tariffs'
Customs and Border Protection area at the International Mail Facility at O'Hare International Airport in Chicago, Nov. 29, 2017. Saturday's talks will be a test of the personal chemistry between the two leaders, which Trump has hailed as a warm friendship.