Chinese Companies Remain Uncertain in US-China Tariff Truce

Forex News

According to announcements that followed the meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Argentina, the two sides agreed to keep their trade war from escalating with a promise to halt the imposition of new tariffs for 90 days. The two sides would step up negotiations toward full elimination of all additional tariffs.

The US promised to refrain from raising tariffs on $200 billion of Chinese goods from a current 10% to punitive levels of 25% as planned on January 1. Meanwhile, China agreed to buy American agricultural, energy and industrial goods.

Still, some Chinese companies are worried, that the trade war truce between the US and China may provide just a minor respite in hostilities. Manufacturers say, that the actual agreement seems more like just slightly delaying the problem instead of coming up with effective solutions and the result is just to postpone the fundamental questions instead of solving them. Trade tensions have just been delayed for three months.