Trump caves in to China’s demands on tariffs during G20 meeting
- Author: Eleanor Harrison Dec 06, 2018,
Dec 06, 2018, 0:29
Before Trump met his Chinese counterpart, Xi Jinping, the US had been scheduled to increase tariffs on $200 billion of Chinese goods from 10 percent to 25 percent on January 1.
The United States said Saturday that it agreed in a long-awaited summit with China to suspend new tariffs for 90 days as the two powers seek to end a trade war.
In exchange, the two countries agreed to re-start talks on the USA concerns that triggered the dispute, including "forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft", according to the White House.
"I'll call them "commitments" at this point, which are - commitments are not necessarily a trade deal, but it's stuff that they're going to look at and presumably implement", Kudlow told reporters at an official White House briefing that followed TV interviews and informal briefings by him and Mnuchin earlier in the day.
This is stated in a White house statement following the meeting, the President of the United States of Donald trump and Chinese President XI Jinping. China would also buy agricultural products from USA farmers immediately.
The truce, although temporary, is a positive step towards a resolution to the US-China trade war. In a bit of good news, a new presidential tweet suggests that at least one facet of the trade war might be approaching an armistice.
Trump has long complained about China's unfair trade practices and blamed previous USA leaders for failing to address the matter.
According to the US President, his relationship with Xi is "very special".
On Monday, China's foreign ministry said economic teams in both countries had been instructed to "intensify talks" towards removing all tariffs following the G20 meeting.
He said under the deal China would buy a "tremendous amount of agricultural and other product" from the United States. Ford decided not to import a crossover-ized Focus from China, Volvo began sourcing the XC60 from Sweden rather than from China, Buick considered canceling the American-spec Envision, and Cadillac stopped selling the hybrid CT6 it builds on the outskirts of Shanghai.
China has sought to bolster relations with other countries and forge new economic partnerships this year, as its relationship with the USA faces new strains over trade.
Earlier this year, China lowered its tariffs on foreign auto imports from 25 per cent to 15 per cent.
U.S. Trade Representative Robert Lighthizer said last week he was examining all available tools to raise U.S. tariffs on Chinese vehicles to the 40 percent that China was charging on U.S. -produced vehicles.
Treasury Secretary Steve Mnuchin said on Monday there was a clear shift in tone at Buenos Aires from past discussions with Chinese officials, as Xi offered a clear commitment to open China's markets to US companies.
China "is open to approving the previously unapproved" deal for US company Qualcomm Inc to acquire Netherlands-based NXP Semiconductors "should it again be presented". China has retaliated with duties on some $110bn of U.S. goods over the same period.