'China has agreed to reduce, remove tariffs on United States cars': Donald Trump


"This was an awesome and productive meeting with unlimited possibilities for both the United States and China", he said in a statement.

The agreement by President Donald Trump and his Chinese counterpart Xi Jinping on a cease fire on tariffs postpones the threat of more disruption for China's exporters and their Asian suppliers.

Trump and Xi Jinping agreed Saturday to a 90-day halt in their trade war to allow for negotiations on a host of trade issues.

According to the United States statement, part of the deal to halt stricter tariffs was that the Chinese side would make unspecified but "very substantial" purchases of USA goods immediately.

US Trade Representative Robert Lighthizer said last week that he was examining all available tools to raise US tariffs on Chinese vehicles to the 40 percent level that China was charging on US-made vehicles.

The two sides also agreed to begin discussions on how to resolve issues of concern, including intellectual property protection, non-tariff trade barriers and cyber theft.

The Trump administration also said China would purchase "a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries". Instead, those tariffs will remain in place but at the current, lower rate.

On Monday, China's foreign ministry said economic teams in both countries had been instructed to "intensify talks" towards removing all tariffs following the G20 meeting. Trump said on Twitter.

According to the agreement, the U.S. and China will not increase or introduce new tariffs for 90 days.

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Still, analysts cautioned the deal may have only bought some time for more wrangling over deeply divisive trade and policy differences, and said China's economy will continue to cool regardless under the weight of weakening domestic demand.

Beijing has offered limited details regarding the truce deal made during the Trump-Xi meeting in Buenos Aires, a move to downplay China's compromises in the negotiation and to save face in front of its own people.

Business groups have welcomed those changes but say they don't address more important complaints about a thicket of rules limiting access to China's finance, logistics and other industries. First off, China and the US have a lot of disagreements, and three months is not a lot of time to solve them - especially since the two countries have been at it for over a year.

"We hope this 90-day tariff pause will lead to a positive resolution that removes tariffs altogether and improves US-China trade relations".

Despite the questions, US President Donald Trump was in an ebullient mood, promising benefits to US farmers and vehicle companies. "Both sides avoided the worst-case scenario".

And while it may have been tacked on to the end of two days of G20 diplomacy, it was in many ways the main event of the weekend.

"With Trump himself having personally negotiated the latest deal, this one has a much greater chance of leading to a lasting truce", he wrote in a research note. Will President Xi be willing to encourage USA technology firms to set up and access similar benefits to Chinese firms, which could possibly threaten the 2025 vision?

"My relationship is very special, the relationship that I have with President Xi", he said as the two men were seated. Mr. Trump had warned that a disappointing outcome could prompt more US tariffs.