Trump says China agrees to ‘reduce and remove’ tariffs on U.S. cars

Donald Trump hails 'amazing and productive' talks, as US agrees to suspend new China tariffs for 90 days

The war isn't over, but it'll cool as 2018 comes to an end.

On Saturday, Trump and Xi agreed to put a stop to their tit-for-tat tariffs row, which had roiled world markets for months.

Duties of 10% now on most of those goods are set to rise on January 1, 2019 to a whopping 25% if a deal isn't reached.

The White House said China would buy a not-yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other products from the US.

Analysts at Danske Bank suggest that markets in Asia were buoyed by the trade agreement between the USA and China at this weekend's G20 meeting as the agreement between the U.S. and China provided a 90-day truce allowing for negotiations on a permanent trade deal.

This is where what wasn't addressed at the G20 takes on particular importance. The rate was raised by 25 percentage points in July as part of countermeasures against Washington imposing tariffs on Beijing for alleged theft of intellectual property and technology. He said lawmakers can choose between the replacement, the United States-Mexico-Canada Agreement, or nothing. Trump said on Twitter.

The U.S. LNG sector also needs Chinese participation, however. According to an earlier Bloomberg report, most fentanyl found in the U.S.is manufactured in China. Xi also agreed to designate Fentanyl, which has been one of the drugs driving the opioid crisis in the US, as a Controlled Substance.

Trump declared widespread opioid abuse a public health emergency in October 2017 and vowed to use the federal government's legal powers to pursue companies that help fuel the epidemic. Most important among them, and perhaps the most intractable, is the US argument that Beijing has deployed predatory tactics in a headlong drive to overtake America's global supremacy in high technology. A microphone recorded Trump telling the aide "get me out of here".

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One of the other men who illegally crossed into the United States after traveling in the caravan has been deported in the past. Asylum seekers are often released in the US pending the outcome of their cases in immigration court.

The Republican president called their agreement - which Washington hopes will help close a yawning trade gap with the Asian giant and help protect U.S. intellectual property - an "incredible" deal.

Forged over grilled sirloin at the Group of 20 summit Saturday in Buenos Aires, Argentina, the ceasefire Trump and Xi agreed to Saturday night illustrated that the leaders of the world's two largest economies can at least find some common ground, however tentative and ill-defined it might be.

Trump, who in recent months has harshly criticised China and accused it of meddling in U.S. elections, in the statement called his meeting with Xi "amazing and productive". With the threat hanging over the trading relationship, business sentiment and investment decisions will likely be hampered in the first quarter of 2019, and firms may use the 90-day period to accelerate exports and seek non-Chinese sources of supply. He made this pronouncement despite in October withdrawing the U.S.

White House trade adviser, Peter Navarro, said, however that the talks would be led by U.S. Trade Representative Robert Lighthizer - a shift from past practices where Mnuchin had a lead role.

This is all to say that while investors might breathe easy in the coming days, it's best not to lose sight of the forest for the trees.

Even so, the Buenos Aires breakthrough may calm investors who anxious about financial damage from the trade hostilities.

The deeper, fundamental divergences between the two sides will remain well in place and are unlikely to be ironed out in just 90 days.

They include attempts to secure the denuclearization of North Korea and China's increasingly self-confident expansion of military power, especially in the South China Sea. It is republished here with kind permission.

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