The U.S. will postpone until March 1 a plan to raise tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent, with Washington set to resume talks with Beijing in hopes of a longer-term deal on trade.
China has made more than $1.2 trillion in additional trade commitments as part of a deal reached by U.S. President Donald Trump and China's Xi Jinping and Beijing has vowed to take immediate steps on those promises.
Beyond the staying of further tariff implementation, the second most important outcome of the G20 encounter is that we're now entering another period of protracted uncertainty. Fentanyl is a synthetic opioid primarily produced in China that has caused thousands of deaths in North America in recent years.
Although the USA and China agreed to halt the trade war, it wasn't immediately clear whether they had made any progress on the issues that caused it. The tariff on those goods will remain the 10 percent that became effective in September (in addition to any pre-existing tariffs on those goods) for at least 90 days from the truce agreement of December 1, so the 25 percent tariff increase is pushed out by about 60 days. He struck a positive note as he sat across from Xi, despite the USA president's earlier threats to impose new tariffs on Chinese imports as early as the next year.
The White House made clear that the 10 percent tariffs would still leap up to 25 percent if China doesn't meet United States demands in 90 days.
Kudlow told reporters at the White House that Washington would like to see progress quickly on structural issues, including intellectual property theft and technology transfers.
Presidents Donald Trump and Xi Jinping have agreed to a ceasefire in their increasingly painful trade war, yet their governments' differing depictions of the deal show just how far apart they really are.More news: Donald Trump cancels Vladimir Putin meeting at G20 citing Ukraine crisis
More news: Mexico to up security at border after migrants try to cross
More news: Marco Silva 'proud' of Everton's performance despite Liverpool loss
He said the meeting with Trump was a "representation of our personal friendship".
According to a readout from the White House, the two leaders agreed "that they will endeavor to have this transaction completed within the next 90 days". Several bike industry leaders have said closing that loophole would help the industry and create more fair trade than tariffs.
Trump's aggressive trade actions left in their wake a farm industry suffering from China's retaliation, hitting soybeans especially hard, and a business sector fraught with uncertainty, facing higher costs and holding off on investment. We'll know more when the White House sends out an official statement.
China "is open to approving the previously unapproved" deal for USA company Qualcomm Inc to acquire Netherlands-based NXP Semiconductors "should it again be presented". The two heads of state reached consensus to halt the mutual increase of new tariffs, ' Wang said.
"We will probably end up getting something that will be good for China and the United States", Trump said, while Xi said they shared tremendous responsibility to find a solution.
China will agree to purchase a not yet finalized but very substantial amount of agricultural, energy, industrial, and other products from the United States to reduce the imbalance. Will President Xi be willing to encourage United States technology firms to set up and access similar benefits to Chinese firms, which could possibly threaten the 2025 vision?
Beijing will no doubt attempt to make good on its pledge to increase purchases of USA goods, turning probably to soybeans and potentially energy.