Trump says China agrees to ‘reduce and remove’ tariffs on USA cars

Ann Santiago
December 3, 2018

Soybeans in Chicago led an advance in USA agriculture futures after the White House said China had agreed to immediately restart purchasing American farm products as part of a trade truce between the two countries.

As Trump economic advisor Larry Kudlow said ahead of the dinner: "If things don't work out in this US-China summit meeting, he will invoke another 267 some odd billion dollars in tariffs".

Trump, as often in his diplomatic dealings, appears to consider his personal chemistry with Xi the most important factor in the success of the negotiations.

The U.S. side, he added, is ready to increase cooperation with China through consultations and actively seek mutually beneficial solutions to their problems. That said, China is very likely to increase imports of USA products and services to help reduce bilateral trade deficit, reportedly a key ask from the Trump administration.

In May, Treasury Secretary Steven Mnuchin declared the trade war "on hold" after Beijing agreed to increase its purchases of USA soybeans and liquefied natural gas - a move that could have put a dent in China's massive trade surplus with the United States.

Sen. Alexander was a sponsor of opioids legislation President Trump signed into law in October that he called "the single largest bill to combat a drug crisis in the history of our country". According to both the White House statement and Chinese official reports, both sides agreed to enter into immediate negotiations on a broad range of structural issues in the next 90 days, and not impose additional tariffs in the meantime. President Xi attended a working dinner with President Trump in Buenos Aires on Saturday. But the magnitude and timing of such a reduction were unclear, the person said.

"While we hope that talks with China will achieve meaningful results for USA workers, we urge you to not back down for the sake of a weak and meaningless agreement should China fail to make real concessions", the Democrats wrote.

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 price spike in Chicago soybeans and the fall in Dalian is a normal market reaction to the U.S".

There are also differences in the Chinese and US accounts of what was agreed.

The expert added that Iowa is also one of the largest pork producers in the United States, which could stand to benefit if China agrees to buy more USA pork in the future.

Whereas both nations had been locked into a trade war for much of the year, Trump and Xi agreed over the weekend to suspend new tariffs and re-enter talks.

It would also be good news for Tesla, which has been hit hard by increased tariffs on the electric cars it imports to China.

On the US side, these include advisers such as Larry Kudlow and Treasury Secretary Steven Mnuchin, who are widely seen as wanting to cut a deal, but also hawkish advisers like Peter Navarro and US Trade Representative Robert Lighthizer. "Both sides agreed to open their markets to each other, ensuring U.S. concerns would be addressed during the next round of reform and opening up in China", Wang said in a statement released on Sunday. China has retaliated with tariffs on $110 billion worth of US imports.

The move, if realized, would bolster US vehicle manufacturers who were hit hard when China ramped up levies on USA -made cars in July as part of a broad package of retaliatory tariffs amid a sprawling trade war between Washington and Beijing.

The price increase sparked a major hit to the roughly $10 billion worth of passenger vehicles the United States sent to China previous year. The closely watched index is now up 3.2 for the year and, with the U.S.

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