Published: Wed, December 05, 2018
Finance | By Loren Pratt

Trump Touts Benefits of China Trade Truce for U.S. Farmers

Trump Touts Benefits of China Trade Truce for U.S. Farmers

U.S. President Donald Trump tweeted Sunday that China has agreed to reduce and remove tariffs on U.S. cars, a day after the two countries struck an accord in Argentina to put off imposing new duties.

"The US business community is pleased that the two governments have agreed to begin doing the hard work of resolving the substantive issues that American companies have faced in China, and to postpone the imminent tariff increases that had been on the horizon".

Trump nevertheless praised himself for the dinner, and abandoned nuance in claiming on Twitter that China had agreed to immediately buy more US farm products, in addition to dropping auto tariffs. For months, the two countries have engaged in tit-for-tat increases in tariffs on hundreds of billions of dollars of exports flowing between the two countries.

The news comes as Trump mulls a tariff hike on vehicles imported from the European Union. "China relations that both sides claim victory", said Michael Pillsbury, a senior fellow at the Hudson Institute and a defense official under presidents including Ronald Reagan and George W. Bush.

'It is hoped that the trade teams from both countries will reach as many practical agreements as possible and as quickly as possible to hasten China-US cooperation, ' the daily said.

After being spooked by the conflict, investors returned to buying following the long-awaited meeting between the two presidents.

Of course, economists are not convinced that a trade deficit is even a bad thing.

Tensions rose in May when the United States administration said it would levy extra taxes on $50 billion worth of Chinese goods, bringing that figure up to $250 billion over the next few months.

But as trade tensions ratcheted up with the U.S. this summer, Beijing retaliated by slapping vehicles imported from the United States with an extra 25 per cent tariff, bringing the total tariff rate to 40 per cent.


"The Chinese public needs to keep in mind that China-U.S. trade negotiations fluctuate". "But I will just tell you, as an involved participant, we expect those tariffs to go to zero".

In July, China reduced auto import duties from 25 per cent to 15 per cent, a boon for worldwide carmakers keen to grow sales in the world's largest auto market.

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

The Great Leap Forward was a cornerstone of Chairman Mao Zedong's move toward a socialist economy by requiring farmers to "collectivize" their property and operations, and by forcing farm workers to take industrial jobs.

The increases come after the United States and China said they had agreed to not increase tariffs for 90 days to allow for talks.

According to a statement from the White House, China will purchase a "very substantial" amount of agricultural, energy, industrial, and other products to reduce the bilateral trade imbalance.

In order to secure the 90-day ceasefire from the US, China agreed to a number of additional commitments.

Stein added that he is "surprised" to see Xi's positive message on the deal between Qualcomm and NXP Semiconductors, but he still worries about the longer-term situation for chipmakers given that the current 10% tariffs have already hurt demand and the result of the discussion on non-tariff barriers remains unclear.

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