In a meeting lasting two and a half hours, the United States agreed not to raise tariffs further on January 1, while China agreed to purchase more agricultural products from USA farmers immediately.
And just days ahead of Trump's planned meeting with Xi at the G20 summit, the United States president vowed to put tariffs on all remaining imports from China if the two sides failed to reach a deal, according to The Wall Street Journal. Trump was in full salesman mode, describing it as an "incredible deal", while the Chinese foreign ministry called the talks "very successful".
While Washington touted the immediate increase in Chinese purchases of USA farm goods, Beijing's statement was much more open, with no reference to immediate action or to agricultural products.
The United States had a $335.4 billion trade deficit with China in 2017.
In return, China is to purchase "very substantial" amount of agricultural, energy, industrial and other products from the United States.
-China trade war began in July that the two countries both want to reach a truce. -China trade spat following a detente he agreed to over the weekend with his Chinese counterpart. The White House made it clear that the 10 percent tariffs would still leap up to 25 percent if China doesn't meet USA demands in 90 days.
'China has agreed to start purchasing agricultural product from our farmers immediately'.
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The US trade deficit with China was $335 billion a year ago and many manufacturers rely on inputs from the world's number two economy, so eliminating the deficit would be an extraordinary goal.
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Larry Pizzi, president and head of sales at Accell North America, said, "I am pleased by the postponement of the additional 15 percent tariff increase imposed on (non-electric) bicycles and bicycle parts and accessories, and remain hopeful that this 90 day stay will ultimately prevent the incremental tariff and net positive results for American consumers and the USA bicycle industry".
Beijing has offered limited details regarding the truce deal made during the Trump-Xi meeting in Buenos Aires, a move to downplay China's compromises in the negotiation and to save face in front of its own people. Despite the positive talks so far, these policies will likely cause the most issues nearing the 90-day deadline.
"If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%", it added.
"I think the Chinese are hoping that political and economic factors will converge to convince the Trump administration to lower the bar somewhat so that China can meet some of the requirements", Glaser said.
China is now the world's largest manufacturer of cars and auto parts as well as the world's biggest market for cars.More news: Ohio State University football coach Urban Meyer to announce retirement