US And China Agreed to Suspend New Trade Tariffs
It looks like that G20 summit brought significant progress in the US-China trade dispute. US President Donald Trump and Chinese President Xi Jinping agreed to keep their trade war from escalating with a promise to halt the imposition of new tariffs for 90 days as the world’s two largest economies negotiate a lasting agreement. It was the first face-to-face meeting between the two leaders since a trade war erupted earlier this year.
The two sides would step up negotiations toward full elimination of all additional tariffs. Both presidents also agreed to immediately start talks on structural changes with respect to forced technology transfers, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture.
The White House called the meeting “highly successful,” saying the US will leave existing tariffs on $200 billion of Chinese goods at 10% and refrain from raising that rate to 25% as planned on January 1.
Both sides have imposed tariffs on billions of dollars' worth of goods. The US has hit $250bn of Chinese goods with tariffs since July, and China has retaliated by imposing duties on $110bn of US products. Donald Trump had also said that if talks in Argentina were unsuccessful, he would carry out a threat to hit the remaining $267bn of annual Chinese exports to the US with tariffs of between 10% and 25%.
According to economists, the next crucial date to watch for clues on where the trade war is heading may be just around the corner, way before the end of the 90-day period that US President Donald Trump and Chinese President Xi Jinping have agreed on to withhold further tariffs.