U.S., CHINA REACH TRUCE
Trump won’t raise tariffs Jan. 1; Xi agrees to buy ‘very substantial amount’ of American products
BUENOS AIRES, Argentina — The United States and China reached a 90-day ceasefire in a trade dispute that has rattled financial markets and threatened world economic growth. The breakthrough came after a dinner meeting Saturday between President Donald Trump and Chinese leader Xi Jinping at the Group of 20 summit in Buenos Aires.
Trump agreed to hold off on plans to raise tariffs Jan. 1 on $200 billion in Chinese goods. The Chinese agreed to buy a “not yet agreed upon, but very substantial amount of agricultural, energy, industrial” and other products from the United States to reduce America’s huge trade deficit with China, the White House said.
The truce buys time for the two countries to work out their differences in a dispute over Beijing’s aggressive drive to supplant U.S. technological dominance.
In another long-sought concession to the U.S., China agreed to label fentanyl, the deadly synthetic opioid responsible for tens of thousands of American drug deaths annually, as a controlled substance.
The White House announcement framed a victory for Trump and his unflinching negotiating tactics, securing a commitment from China to engage in talks on key U.S. economic priorities, with little obvious concession by the U.S. Notably, however, the White House appears to be reversing course on its previous threats to tie trade discussions to security concerns, like China’s attempted territorial expansion in the South China Sea.
“It’s great the two sides took advantage of this opportunity to call a truce,” said Andy Rothman, investment strategist at Matthews Asia. “The two sides appear to have had a major change of heart to move away from confrontation toward engagement. This changes the tone and direction of the bilateral conversation.”
The Trump-Xi meeting was the marquee event of Trump’s whirlwind two-day trip to Argentina for the G-20 summit after the president canceled a sit-down with Russian President Vladimir Putin over mounting tensions between Russia and Ukraine.
Trump and Putin did end up talking briefly Saturday on the sidelines of the G-20 — just long enough for Trump to ask Putin what he is up to in Ukraine, and for Putin to respond.
“I answered his questions about the incident in the Black Sea. He has his position. I have my own. We stayed in our own positions,” Putin told reporters.
Trump also canceled a Saturday news conference, citing respect for the Bush family following the death of former President George H.W. Bush.
Trump said Bush’s death put a “damper” on what he described as a “very important meeting” with Xi.
Trump also said Saturday he’ll be “formally terminating NAFTA” and that Congress will have to choose between a replacement or nothing. The president also said his next meeting with North Korean leader Kim Jong Un is likely to be in January or February and that three sites are being considered.