US and China in trade tariffs truce after tense G20 summit

US and China in trade tariffs truce after tense G20 summit

US and China in trade tariffs truce after tense G20 summit

Analysts at Danske Bank suggest that markets in Asia were buoyed by the trade agreement between the United States and China at this weekend's G20 meeting as the agreement between the U.S. and China provided a 90-day truce allowing for negotiations on a permanent trade deal.

Washington agreed to delay a tariff increase on more than 200-billion US dollars' worth of Chinese imports to 25-percent from 10-percent originally planned to go into effect on January 1st, . while China agreed to resume purchases of USA farm and energy commodities.

China has agreed to reduce and remove tariffs on cars coming into China from the U.S. now the tariff is 40%. "China's reform and opening-up's broad perspective recognises that the rest of the world does things differently", it said in its editorial.

The US statement also lays out major issues for discussion in the coming 90 days and types of American products that China promises to purchase, while the details are not disclosed by the Chinese government and barely reported by the heavily regulated Chinese domestic media outlets. The downside for China is that it also needs USA sourced LNG as its insatiable gas demand expands amid Beijing's mandate that gas make up at least 10 percent of its power generation energy mix by 2020, with further earmarks set for 2030.

"What he will be doing to fentanyl could be a game changer for the United States and what fentanyl is doing to our country in terms of killing people", Trump told reporters on aboard Air Force One as he left Argentina following the Group of 20 summit. "He's going to hold the Chinese accountable". Trump said on Twitter.

"The Chinese public needs to keep in mind that China-U.S. trade negotiations fluctuate".

"But it seems to me that it's very important for us and for them to find a way of meeting before then", said Ushakov.

Under the agreement reached in Buenos Aires, the two countries have 90 days to resolve their differences over Beijing's tech policies.

Qatar announces Opec exit days before pivotal oil cuts meeting
Qatar, who has been a member of OPEC for 57 years, said that it would still abide by its commitments to the group. Qatar produces about 600,000 bpd , which ranks it among the smaller OPEC producers.

China's imports of USA commodities had shown strong growth prior to the imposition of tariffs in the middle of this year.

Growing concerns that the trade war will increasingly hurt corporate earnings and the US economy are a key reason why USA stock prices have been sinking this fall.

And for the Chinese president, "growth is slowing and I think there's an interest in trying to get this behind them", Goodman said of the tariff battle with Trump. About 10 per cent, or more than 280,200, cars China imported a year ago came from the United States, according to China's Passenger Car Association.

The two leaders also agreed to immediately start talks on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions, cyber theft, services and agriculture.

China imported zero US coal - subject to tariffs - in October, two cargoes totalling about 211,000 tons in November, and none are scheduled to arrive in December or January.

Mr Trump has been willing to declare victory with only modest concessions in the past, pointing to new trade deals with South Korea, Canada and Mexico, he added.

Of China's US$51 billion of vehicle imports in 2017, about US$13.5 billion came from North America, including sales of models made there by non-US manufacturers like BMW. The planned tariff increase would be paused in the meantime, but she stressed the tariffs will be raised to 25 percent at the end of 90 days if "the parties are unable to reach an agreement".

Related news