China agrees to 'reduce and remove' tariffs on USA cars

China agrees to 'reduce and remove' tariffs on USA cars

US President Donald Trump, right and China's President Xi Jinping, left, along with members of their delegations, have dinner at the end of the G20 Leaders' Summit in Buenos Aires, on Saturday. The president said in a tweet that China had "agreed to reduce and remove" the tariffs.

Aaron Friedberg, a Princeton University professor of politics and global affairs, told NBC News before the G-20 summit that such a temporary cease-fire - setting up a structure for further negotiations - was the likely outcome of the Trump-Xi talks. But if no agreement is reached, the tariffs, according to the White House, will rise to 25 percent.

German Chancellor Angela Merkel expressed hope that the Sino-US meeting would "lead to solutions", after Trump ignited a trade war by slapping $250 billion in tariffs on China and threatening more to come next month.

President Trump and China's President Xi Jinping agreed Saturday to a 90-day halt on new tariffs, hailed as a ceasefire in the countries' trade war.

This means that the USA will not raise the 10% tariff rate on $US200 billion worth of Chinese goods to 25% on January 1, as originally scheduled.

White House Press Secretary Sarah Sanders said Trump and Xi had agreed to begin immediate trade negotiations on the stickier points of contention between the two powers, including forced technology transfer and intellectual property protection. "China trade truce because China has agreed to start buying agricultural products from American farmers immediately", said Monica Tu, an analyst at researcher Shanghai JC Intelligence Co.

Stocks in Japan and Australia were also up more than 1 percent.

"The truce prevented a further increase in tariffs or new tariffs imposed from the U.S. side".

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"We'll see what reactions we get in the next few months", to the WTO reform call in the communique, G-20 host Mauricio Macri, the president of Argentina, told reporters, adding, "there is clearly a need for dispute mechanisms that are more agile".

Trump spent more than a year pushing the leaders of Canada and Mexico into agreeing to a rewrite of North American trade rules.

One expert said China would have to address U.S. complaints about China's forced transfer of intellectual property rights - a major issue at the core of a United States "301" trade investigation - for Washington to drop its tariffs. The White House's official statement says nothing of the sort; it only says the US will hold negotiations with China on the latter's "forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture".

While Beijing retaliated for USA tariff hikes by imposing penalty charges on American soybeans, autos and other goods, it has cut duties on factory machinery and other imports from other countries.

The biggest headline is that both sides have agreed to temporarily hold off on the implementation of new tariffs.

Trump's tweet did not give any further detail about the tariff cuts, such as when the deal had been reached or a new level for the Chinese levies.

"It's 90 days. It's nothing and it doesn't really make any difference".

US officials insist that the American economy is more resilient to the tumult than China's, but they remain anxious of the economic effects of a prolonged showdown - as Trump has made economic growth the benchmark by which he wants his administration judged.

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