Trump says China has agreed to reduce, remove tariffs on cars

Reuters  Marcos Brindicci

Reuters Marcos Brindicci

China will roll back tariffs on US-made cars, US President Donald Trump said, unveiling another potential breakthrough in a trade war truce that cheered stock markets on Monday.

US President Donald Trump (R) and China's President Xi Jinping (L) along with members of their delegations, hold a dinner meeting at the end of the G20 Leaders' Summit in Buenos Aires on December 1 2018.

But as trade tensions ratcheted up with the USA this summer, Beijing retaliated by slapping vehicles imported from the USA with an extra 25 per cent tariff, bringing the total tariff rate to 40 per cent. Beijing will no doubt attempt to make good on its pledge to increase purchases of US goods, turning probably to soybeans and potentially energy.

The United States and China will carry forward negotiations over a 90-day period; if that period expires without a satisfactory comprehensive agreement - an all too likely outcome - further escalation will take place.

"Trump's policy has been so unpredictable that Chinese companies are being very cautious on buying US commodities with or without tariffs".

However, concerns remain over the differences between the official statements released by the two countries.

Asian and European stock markets jumped on Monday, with Hong Kong and Shanghai closing sharply higher and the yuan strengthening after months of trade-war turbulence.

Carl Weinberg of High Frequency Economics noted that the diverging messages from Xi and Trump after the meeting were creating doubt about what was agreed.

But observers warned there were still major issues that need to be resolved, including access for United States companies and intellectual property protection.

The US and China have been locked in a bitter trade war for several months with the two economic powerhouses sparring in a tit-for-tat slapping of sanctions on each other.

According to the White House, the USA will still keep in place $200 billion of tariffs on Chinese imports but will not increase those tariffs from 10 percent to 25 percent after the start of the year as originally planned.

Dolce & Gabbana apologizes for 'racist' ad
He added: "We've always been very insane about China, we've visited it a lot". The message added: " China ignorant dirty smelling mafia ".

US-made vehicle brands like Tesla Inc and Ford Motor Co's Lincoln were at a major disadvantage as the move came soon after China slashed auto import tariffs for the wider market to 15 percent from 25 percent.

USA officials say China unfairly uses subsidies and other tactics to flood USA markets with goods too cheap for American companies to compete with, including steel and aluminium.

While Beijing retaliated for U.S. tariff hikes by imposing penalty charges on American soybeans, autos and other goods, it has cut duties on factory machinery and other imports from other countries.

"What he will be doing to fentanyl could be a game changer for the United States and what fentanyl is doing to our country in terms of killing people", Trump told reporters on aboard Air Force One as he left Argentina following the Group of 20 summit.

The Global Times said the two sides would discuss expanding market access, protecting intellectual property and "joint control of cyber crime".

National Economic Council Director Larry Kudlow said he, Mnuchin and U.S. Trade Representative Robert Lighthizer had lunch with China's vice premier in Argentina and he told them that Beijing would move immediately on the new commitments.

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 agricultural products from USA farmers immediately.

But in an editorial, the official China Daily warned that while the new "consensus" was a welcome development and gave both sides "breathing space" to resolve their differences, there was no "magic wand" that would allow the grievances to disappear immediately.

What else happened in Buenos Aires?

"Level the field!" he said in a series of early morning tweet.

Recommended News

  • US, Mexico and Canada sign new USMCA trade deal

    US, Mexico and Canada sign new USMCA trade deal

    Trump signed the agreement with the LGBT provisions intact even though a group of 38 House Republicans led by Rep. Under the new pact, 75 percent of automobiles content must be manufactured in North America.
    Priyanka Chopra & Nick Jonas Cover 'Vogue' as Newlyweds!

    Priyanka Chopra & Nick Jonas Cover 'Vogue' as Newlyweds!

    The newlyweds will reportedly fly from Jodhpur to Delhi the next day for their wedding reception at the Taj Palace Hotel. Priyanka and Nick Jodhpur , 2018 Shot by @harshabathija We're out of words and out of breath at this moment.
    Pochettino says Spurs can beat Barcelona and make knockout round

    Pochettino says Spurs can beat Barcelona and make knockout round

    It is a must-win fixture for Tottenham as they seek a place in the knockout stages of the competition. "We will try to play the ideal game". "All is possible in football", the Spurs manager said.
  • Canada imposes sanctions on Saudi nationals linked to Khashoggi murder

    Canada imposes sanctions on Saudi nationals linked to Khashoggi murder

    The Trump administration has refused to rebuke Mohammed Bin Salman or imperil the long-standing US relationship with the kingdom. On Wednesday, the Senate voted 63 to 37 to advance a bipartisan resolution on halting usa support for Saudi forces in Yemen.
    Spurs’ Popovich says Kawhi Leonard ‘wasn’t a leader’

    Spurs’ Popovich says Kawhi Leonard ‘wasn’t a leader’

    After scoring a season-high 35 points in Sunday's loss to the Toronto Raptors , he was more than willing to accept it. Leonard, who was ultimately traded to Toronto , was asked Sunday about the comments of his former head coach .
    Watch Tito Ortiz knockout Chuck Liddell

    Watch Tito Ortiz knockout Chuck Liddell

    Liddell, of San Luis Obispo, California, has now suffered seven losses by knockout in his illustrious career. Well, in advance of tomorrow's scrap, Golden Boy Promotions has released the preview video below.
  • Meghan Markle will NOT attend Priyanka Chopra and Nick Jonas' wedding

    Meghan Markle will NOT attend Priyanka Chopra and Nick Jonas' wedding

    The festivities will commence today and all functions will be held at the Umaid Bhavan Palace in Jodhpur, Rajasthan. Priyanka Chopra , 36, and Nick Jonas , 26, got engaged in a private roka ceremony in Mumbai in August this year.
    Jurgen Klopp expects

    Jurgen Klopp expects "proper fight" in toughest Merseyside derby yet

    Kop idol Ian Rush believes the next month will hold the key to Liverpool's hopes of winning a first title in 29 years. We do not need an extra portion of motivation because of Paris and what happened on the pitch.
    Priyanka Chopra and Nick Jonas wedding preparations LIVE UPDATES

    Priyanka Chopra and Nick Jonas wedding preparations LIVE UPDATES

    Actor Priyanka Chopra will be marrying American pop star Nick Jonas in an intimate ceremony in Jodhpur . The following year, they met at the Vanity Fair Oscars After Party .
  • A 7.0-Magnitude Earthquake Just Shook Alaska

    A 7.0-Magnitude Earthquake Just Shook Alaska

    Geological Survey said the first and more powerful quake was centered about 12km north of Anchorage , Alaska's largest city. Randy Van Ness mops an aisle at Andy's Ace Hardware after a 7.0-magnitude quake hit in Anchorage , Alaska, Friday, Nov. 30.
    Alabama's win over Georgia likely puts Sooners in College Football Playoff

    Alabama's win over Georgia likely puts Sooners in College Football Playoff

    Oklahoma's loss came to Texas while Georgia had lost to LSU, a team that was in the CFP top 10 for much of the season. Kelly Bryant was replaced by Trevor Lawrence at Clemson and Notre Dame benched Brandon Wimbush in favor of Ian Book.
    Apple Faces Supreme Court in App Store Monopoly Battle

    Apple Faces Supreme Court in App Store Monopoly Battle

    Users who want to get around this restriction can "jailbreak" their device, but doing so voids their device's warranty with Apple. "The first sale is from Apple to the customer", said Justice Sonia Sotomayor, describing Apple's system as a "closed loop".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.