Trump freezes new tariffs on Chinese goods in trade war 'breakthrough'

Trump freezes new tariffs on Chinese goods in trade war 'breakthrough'

"President Trump has agreed that on January 1, 2019, he will leave the tariffs on $200 billion worth of product at the 10 percent rate, and not raise it to 25 percent at this time", the statement read.

China and the United States have agreed to halt new tariffs, as the two countries aim to reach a trade agreement within 90 days, the White House has said.

Before the dinner of grilled sirloin, red onions, goat ricotta and dates, Trump told reporters that "we'll be discussing trade and I think at some point we are going to end up doing something that is great for China and great for the United States". In exchange, the US wants an immediate start to talks on Trump's biggest complaints about Chinese trade practices: intellectual property theft, non-tariff barriers and forced technology transfer.

Mr Trump also said that if talks were unsuccessful, he would carry out a threat to hit the remaining $267bn of annual Chinese exports to the USA with tariffs of 10-25%.

"This was an wonderful and productive meeting with unlimited possibilities for both the United States and China", Trump said in a statement released by the White House.

"It goes down, certainly - if it happens, it goes down as one of the largest deals ever made", Trump told reporters aboard Air Force One as he returned from Argentina.

European officials said the draft document included a reference to climate change, which has proved a sticking point in the past with the current US administration.

FILE - Plastic bags of fentanyl are displayed at the U.S. Customs and Border Protection area at the International Mail Facility at O'Hare International Airport in Chicago, Nov. 29, 2017.

The two leaders, who were in Buenos Aires for a summit of the G20 countries, called it "a highly successful meeting", a White House statement said. Both sides had been optimistic that a compromise deal could be reached in the wake of the USA imposing tariffs on US$250 billion of Chinese goods, and China retaliating by imposing tariffs on US$110 billion of United States products.

Most U.S. supply of the drug is manufactured in China.

President Donald Trump has ordered American flags to fly at half-staff for 30 days to honor former President George H.W. Bush. "This was an unbelievable and productive meeting with unlimited possibilities for both the United States and China", Trump said in the statement, released as he flew home from a stormy trip spent accosting his fellow leaders at the world's pre-eminent economic forum.

"We will probably end up ending up getting something that will be good for China and the United States", Trump said.

But the U.S. reiterated its withdrawal from the agreement, "and affirms its strong commitment to economic growth and energy access and security".

The U.S. has imposed import taxes on $250 billion worth of Chinese products, citing predatory trade practices by the Chinese, and China has countered by targeting $110 billion in U.S. imports.

Yu Haibin, a senior official with China's National Narcotics Control Commission, said in a press briefing at the time that Trump's comments were "unacceptable" and "irresponsible".

Beyond entrenching their position, U.S. officials said they saw growing dissent, even if the communique still resulted in a 19 versus 1 declaration backing the Paris climate pact. Trump had threatened to do that, and possibly add tariffs on $267 billion of imports, if there was no progress in the talks.

The White House quoted Xi as saying he is "open to approving" Qualcomm's $44 billion takeover of NXP Semiconductors, which the American company had abandoned in July after failing to secure Chinese regulatory approvals.

G20 leaders have found the minimum common ground on the global economy at a summit in Buenos Aires with a closing communique that left divisions on clear display.

"President Trump expressed his friendship and respect for Chairman Kim", it said.

The Chinese government also welcomed the outcome of the talks.

Trump, who campaigned in 2016 on cracking down on what he called Chinese trade abuses, comes into the meeting with a specific set of demands.

Related Articles