United States and China approach in the trade dispute


The two-and-a-half-hour dinner shared by Xi Jinping and Donald Trump in Argentina, where they repeatedly emphasized their great friendship, has ended with an apparent "trade truce" but no immediate tangible results or declaration.

Before Shen heads to Mexico, Xi will meet with Trump at the G20 summit in Buenos Aires as their trade war shows no signs of abating. In return, President Xi Jinping agreed to purchase a "very substantial" amount of agriculture, energy and industrial products from the USA to lessen the trade imbalance, although the exact amount has not yet been decided.

Trump went on to praise what he said was his "very strong and personal relationship" with Xi. President Trump has changed all that.

The US agreed to postpone further tariffs on Chinese goods - a halt that applies to its plans to raise tariffs from 10% to 25% on nearly 6,000 items, starting 1 January.

However, the truce may well be "less a breakthrough than a breakdown averted", as the New York Times puts it, since China and the United States have very different perspectives on even basic issues such as trade policy and market access, and both show little willingness to compromise.

Mr. Trump provided no details of how much of a reduction China had agreed to, and Beijing did not immediately confirm that any deal had been reached to readjust the harsh tariffs, which were brought into effect in July amid an escalating trade war.

That's probably the best takeaway from the trade agreement between the United States and China that was announced Saturday at the G20 conference in Buenos Aires.

In return, China is to purchase "very substantial" amounts of agricultural, energy, industrial and other products from the United States.

G20 Argentina China President Trump President Xi Jacquie Kubin Fentanyl Trade
Stopping China’s Fentanyl River

The U.S. and China have reached a provisional agreement in their for months the ongoing trade conflict.

China has agreed to start purchasing agricultural products from our farmers immediately. The agreement keeps those tariffs at 10 percent for at least the next 90 days while the countries negotiate further.

The US trade deficit with China was $335 billion a year ago and many manufacturers rely on inputs from the world's number two economy, so eliminating the deficit would be an extraordinary goal. China has retaliated with duties on some $110bn of USA goods over the same period. Now, these tariffs will not be increased for 90 days, that is, until March 1, 2019.

In what is being termed a humanitarian gesture, President Xi has agreed to designate Fentanyl as a Controlled Substance.

Trump said they would also discuss the opioid crisis.

Confusion has also arisen over when the agreed 90 day period for negotiations will kick in, with some saying it begins now, others claiming it's January.

Trump had cancelled a scheduled bilateral meeting with Putin in Argentina, but White House spokeswoman Sarah Sanders said the two did have an "informal" conversation when they crossed paths at a summit dinner Friday.