US and China declare trade truce at G20 summit

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US China G20 Summit in Buenos Aires
US China G20 Summit in Buenos Aires

At the G20 summit in Buenos Aires, US President Donald Trump and China’s
Xi Jinping agreed on Saturday (01 Dec 2018) to suspend any new tariffs for 90
days as the two powers seek to end a trade war.

US President Donald Trump agreed to hold off on plans to raise tariffs to25% on 01 Jan 2019. In return, Beijing agreed to buy a “very substantial amount”of agricultural, energy and industrial products from the US to reduce huge trade deficit between China and the US.

President Trump and President Xi have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture.

Both parties agree that they will endeavor to have this transaction completed within the next 90 days. However at the end of the 90 days period, if both the US and China are unable to reach an agreement, the 10% tariffs will be raised to 25%.

President Trump stated: “This was an amazing and productive meeting with unlimited possibilities for both the United States and China. It is my great honor to be working with President Xi.”

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