Recently, tension has arisen between the two largest economic superpowers in the world, as the president of the United States, Donald Trump, negotiates a new agreement with Chinese President, Xi Jinping. In an effort to keep their current trade war from escalating, a promise has been made to temporarily halt the implementation of any new trade tariffs.
Saturday, after a long-anticipated dinner in Argentina, amidst the Group of 20 Summit, Trump and Xi finally reached a truce. The two world leaders intensified their trade discussion, agreeing to put a damper on the introduction of new tariffs.
Of course, Trump and the White House claimed that the dinner was “highly successful.” According to President Donald Trump, the United States will leave tariffs on $200 billion of Chinese goods at 10%. The United States will, reportedly, refrain from increasing, in January, these numbers to the 25% formerly agreed upon. In return, Trump insisted that China immediately open talks of trade practice the president has expressed immense concern for, including the theft of intellectual property, barriers on non-tariffs, and cyber theft. Ultimately, if there is no progress made on the structural reform of their trade, the United States will raise those tariffs by 25%. As a result of the dinner, China also agreed to invest more in agricultural and industrial goods, attempting to better balance its trade with the United States.
In a recent statement, President Donald Trump said that the meeting was amazing and productive, providing unlimited possibilities for both the United States and China.
The meeting went on for longer than expected, extending two hours after the meeting was supposed to have finished. This is encouraging to some witnesses, considering Trump may have increased pressure on China to cooperate.
Donald Trump reportedly opened the meeting on a hopeful note, starting, “my relationship is very special, the relationship that I have with President Xi. This is going to be a very primary reason why we are probably going to be ending up getting something that will be good for China and good for the United States.”
As the two were seated, President Xi’s statement was translated as, “only with cooperation between us can we serve the interest of global peace and prosperity and that is why I look forward to this meeting.”
This Trump-Xi meeting was the first physical meeting between the two leaders in over a year. During that time, Trump imposed billions of dollars in tariffs on imported goods from China. A disappointing outcome to this meeting, Trump warned Xi, could result in even more U.S tariffs.
–News from Davenport Laroche, International Investing Brokerage out of Hong Kong