Donald Trump Has "Puzzled and Irritated" China on Trade, Report Claims

DEVELOPING: US-China trade uncertainty fuels market plunge

DEVELOPING: US-China trade uncertainty fuels market plunge

The White House and Beijing have essentially reached an agreement to pause the trade war for 90 days while the two sides try to reach a formal trade deal.

Trump said China had committed to buying large amounts of USA agricultural products and completely removing all tariffs on United States automobiles, a huge shift from its current 40 per cent penalty, although China hasn't confirmed this.

"Very strong signals being sent by China once they returned home from their long trip, including stops, from Argentina", Trump said, speaking of China's attendance at the G-20 summit last weekend.

At last weekend's dinner meeting in Argentina, the presidents agreed to suspend a planned hike in tariffs on $200 billion in Chinese goods to the US from 10% to 25%.

"We are now taking in $billions in Tariffs".

But Asia failed to follow the lead to the same extent after China gave its first official comments on the temporary trade truce which allowed for tariff hikes to be postponed for 90 days- until 1 April.

Mr. Trump has used tariffs to force Beijing to the negotiating table over its long-standing trade abuses, including tariffs and other trade barriers, theft of intellectual property and forced transfer of technology from US companies doing business in China.

The Trump administration is celebrating the 90-day truce it reached in its trade war with China as a significant breakthrough despite scant details, a hazy timetable and widespread scepticism that Beijing will yield to the United States demands anytime soon.

"It doesn't seem like anything was actually agreed to at the dinner and White House officials are contorting themselves into pretzels to reconcile Trump's tweets (which seem if not completely fabricated then grossly exaggerated) with reality", said an investor note issued by JPMorgan. "When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so", he added. "ALL subjects discussed!" Trump said on Twitter.

Pompeo said in Brussels on Tuesday the U.S. could abandon some worldwide agreements to thwart bad actors like China, which he accused of cynically exploiting World Trade Organization rules.

"The negotiations with China have already started".

"Ninety days is very little time to fix these perennial issues", said Bill Adams, senior economist at PNC.

China has said comparatively little about the Trump-Xi agreement after senior Chinese officials briefed the media following the meeting, and US and Chinese accounts of what the deal entails have sometimes differed. Mnuchin said Monday morning on CNBC that China had offered to buy up to US$1.2 trillion of additional United States goods, even while the "details of that still need to be negotiated". Fentanyl, mixed in with heroin, has caused a spike in drug overdoses in the U.S.

"But if a fair deal is able to be made with China, one that does all of the many things we know must be finally done, I will happily sign". General Motors, which not only exports some models to China but also imports the Chinese-made Envision SUV, fell 5 percent to $36.52 a share.

Chinese officials have been told to take necessary steps for the soybeans and liquefied natural gas purchases, according to two officials with knowledge of the discussions.

"Let the negotiations begin", Trump wrote on Tuesday.

China's Foreign Ministry, the only government department that holds a daily briefing foreign media can attend, has repeatedly referred questions on details to the Commerce Ministry, which has yet to say anything.

The White House has said China had committed to start buying more American products and lifting tariff and non-tariff barriers immediately, while beginning talks on structural changes with respect to forced technology transfers and intellectual property protection.

Recommended News

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.