Trump Holds out Possible Extension on 90-day China Trade Truce

Marco Green
December 4, 2018

Washington and Beijing said they will try to achieve a permanent deal within the next 90 days, however the USA still has significant leverage, stating that if a formal deal can't be reached then it will hike tariffs from 10 percent to 25 percent, which could roil global stock markets, stagnate global economic growth, dampen oil demand growth and possibly lead to a recession across the globe, particularly in emerging economies.

News broke on Saturday that the USA and China had reached a ceasefire in its ongoing trade war after President Trump met with Chinese President Xi Jinping at the G20 summit in Argentina.

China responded to earlier U.S. tariffs with retaliatory levies of its own, targeting $110 billion worth of USA products, including soybeans and other agricultural products.

In a series of tweets, Trump celebrated the opening of negotiations between China and the US.

Trump warned that although he and Xi want to get to an agreement "remember, I am a Tariff Man".

The White House said Xi said he was open to approving the previously unapproved Qualcomm-NXP deal should it again be presented to him.

"When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so". We are right now taking in $billions in Tariffs. White House economic advisor Larry Kudlow said the figure was a broad benchmark that would depend on private transactions for USA goods and was subject to market conditions. Let the negotiations begin.

Trump and Chinese President Xi Jinping on Saturday agreed to the ceasefire in a trade war that has seen the flow of hundreds of billions of dollars worth of goods between the world's two largest economies disrupted by tariffs.

The two leaders said they would hold off on imposing additional tariffs for 90 days starting December 1 while they seek a solution to their trade disputes. China committed to start lifting tariffs and non-tariff barriers immediately, including reducing its 40 percent tariffs on autos, Kudlow said. Trump named U.S. Trade Representative Robert Lighthizer to lead the talks with Beijing.

China offered more than $1.2 trillion in additional commitments on trade at the Xi-Trump dinner, Treasury Secretary Steve Mnuchin said on Monday.

Both sides will immediately hold talks on structural changes concerning forced technology transfers made by Chinese firms on US companies, intellectual property rights protection, non-tariff trade barriers, cyber intrusion concerns, cyber theft and agricultural, the White House added.

"It hasn't been signed and sealed and delivered yet", Kudlow said. On Sunday, Trump tweeted that China had agreed to cut import levies on American-made cars.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER