Argentina hopes G20 summit leads to consensus on trade, climate change: FM

Argentina hopes G20 summit leads to consensus on trade, climate change: FM

Supporting comments made earlier this year, US President Donald Trump has plans to enact additional tariffs on more than $200 billion in imported Chinese goods.

Reports on November 29 out of Washington that China-hawk Peter Navarro will be present during the meeting, and Trump's own statements before boarding the plane to Argentina, suggest that an amicable outcome from the meeting between the two leaders may be increasingly unlikely.

If the United States were to impose tariffs on additional Chinese goods, China could seek to retaliate, but would have limited room to do so via trade.

White House economic adviser Larry Kudlow on Tuesday dangled the possibility of a "breakthrough" at the dinner.

The administration has also signaled its readiness to expand tariffs to cover the entire remaining portion of Chinese imports to the USA, or an additional US$265 billion worth of goods.

Separately, Trump hinted Wednesday that he's looking into imposing tariffs on auto imports, a day after threatening to slash federal subsidies to General Motors.

The US, Canada and Mexico are scheduled to sign the new United States-Mexico-Canada Agreement that is replacing the Nafta trade deal during a ceremony on Friday.

While Trump pointed to Russia's actions this week against Ukraine as the reason behind his cancellation of talks with Putin, many analysts have speculated that the decision was impacted by a surprise Thursday morning guilty plea from the president's former lawyer Michael Cohen. He told The Wall Street Journal it was "highly unlikely" he would refrain from lifting the levy rates to 25 percent.

US President Donald Trump will meet with Japanese Prime Minister Shinzo Abe, and then the two leaders will meet jointly with Prime Minister Modi.

NASA's Martian quake sensor In Sight lands at slight angle
NASA's Martian quake sensor In Sight lands at slight angle

Later he described what he said was the "bottom line" in the dealings with China. "But frankly I like the deal that we have right now", said the president. "But we're going to make a deal with China that's going to be representative of the United States the way it used to be".

"China's strategy towards Trump will favour resilience over retaliation", Mr Hirson says.

Both GM and Ford have said the rise in raw material costs generated by the tariffs will cost each company about US$1b of earnings.

The deal - 32 chapters, 11 annexes and 12 side letters - sets new rules for the auto sector, including a higher threshold for North American content and rules requiring 40 per cent of vehicle parts be made by workers paid at least $16 an hour.

While the announcement sparked an immediate backlash from Trump - a threat to remove tax credits for GM's electric vehicles - the tariffs on imported steel and aluminium have nearly certainly been a factor in the decision.

For starters, USA -imposed tariffs on steel and aluminum exports remain in place against both Canada and Mexico, as do a raft of countermeasures.

The stage could now be set for a possible escalation of the trade war between the two nations. Coming into this G-20, he faces a series of diplomatic challenges - most notably whether he can strike an agreement with Chinese President Xi Jinping to ease trade tensions that have rattled financial markets.

Trump has apparently not yet decided whether this new tariff will be 10% or 25%, but when asked about potential backlash, he indicated that consumers would "very easily" accept a 10% increase on phone prices.

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