‘US wants ‘con­crete’ trade ac­tion from China within 90 days’

Times of Oman - - MARKET -

WASH­ING­TON: The United States said on Mon­day it will need to see “some­thing con­crete” from China in the next 90 days to build a real agree­ment on trade, two days af­ter Don­ald Trump and Xi Jin­ping called a truce in the es­ca­lat­ing con­fronta­tion be­tween the two eco­nomic pow­er­houses.

Trea­sury Secretary

Steven Mnuchin said on CNBC the US and China had held “very spe­cific dis­cus­sions” in Buenos Aires on Satur­day evening on steps to dif­fuse their con­flict, which in­volves hun­dreds of bil­lions in bi­lat­eral trade and had roiled world mar­kets for months.

White House eco­nomic ad­vi­sor Larry Kud­low said he ex­pected the 25 per cent puni­tive tar­iffs on US farm goods to be rolled back and urged China to take im­me­di­ate steps to im­ple­ment some of its com­mit­ments in or­der to give them “more cred­i­bil­ity”.

Mnuchin said for the first time there was “a clear path” to re­duce the US trade deficit with China to zero.

“There was a sig­nif­i­cant com­mit­ment from both lead­ers on what needs to be done over the 90 days and in­struc­tions to both teams to ne­go­ti­ate and turn this into a real agree­ment with spe­cific ac­tion items, de­liv­er­ables and time frames,” Mnuchin said.

Fol­low­ing the Trump-Xi talks, which took place over din­ner at the end of the G20 sum­mit, Wash­ing­ton agreed to hold off on Trump’s threat to im­pose 25 per cent tar­iffs on $200 bil­lion worth of Chi­nese goods from De­cem­ber 1, leav­ing them at the cur­rent 10 per cent rate.

In re­turn, China is to pur­chase “very sub­stan­tial” amounts of agri­cul­tural, en­ergy, in­dus­trial and other prod­ucts from the United States.

In a sur­prise an­nounce­ment tweeted Sun­day night, Trump also said China would “re­duce and re­move” tar­iffs of 40 per cent on cars, though Bei­jing has yet to con­firm the move.

Full story @ time­so­fo­man.com/busi­ness

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