The U.S. and China at the G-20 meeting reached a 90day cease-fire on tariffs.
Xi-Trump meeting at G-20 produces results
BUENOS AIRES, Argentina
— The United States and China reached a 90-day cease-fire 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 Trump-Xi meeting was the marquee event of Trump’s twoday trip to Argentina for the G-20 summit after the president canceled a sit-down with Russian President Vladimir Putin over tensions between Russia and Ukraine. Trump also canceled a Saturday news conference, citing respect for the Bush family after the death of former President George H.W. Bush.
The United States and China are locked in a dispute over their trade imbalance and Beijing’s tech policies. Washington accuses China of deploying predatory tactics in its tech drive, including stealing trade secrets and forcing American firms to hand over technology in exchange for access to the Chinese market.
Under the agreement reached in Buenos Aires, the two countries have 90 days to resolve their differences over Beijing’s tech policies. If they can’t, the U.S. tariff increases will go into effect on the $200 billion in Chinese imports.
Trump has imposed import taxes on $250 billion in Chinese products: 25 percent on $50 billion worth and 10 percent on the other $200 billion.
Trump had planned to raise the tariffs on the $200 billion to 25 percent if he couldn’t get a deal with Xi.
China has slapped tariffs on $110 billion in U.S. goods.
President Donald Trump, center, and Treasury Secretary Steve Mnuchin, second from the right, listen to remarks by China’s President Xi Jinping at the G-20.