Futures on the Dow Jones Industrial Average have surged more than 460 points after President Donald Trump and Chinese President Xi Jinping agreed to a 90-day halt to their trade war that has concerned world equity markets for most of the year, CNBC reported on Sunday.
On Trade, President Trump has agreed that on January 1, 2019, he will leave the tariffs on $200 billion worth of product at the 10% rate, and not raise it to 25% at this time.
China has agreed to "reduce and remove" tariffs below the 40% level that Beijing is now charging on United States cars, Donald Trump has claimed, amid a trade war truce agreed by the two countries.
The U.S. president also didn't pay much attention to Russian President Vladimir Putin, who found himself snubbed for the second time in a month after Trump used Twitter to torpedo their planned meeting in Argentina.
A White House statement said both sides would immediately begin talks over a wide range of issues, including forced technology transfers, intellectual property protection, non-tariff barriers and cyber intrusions.
After 90 days, if there's no progress on structural reform, the US will raise those tariffs to 25 percent, White House Press Secretary Sarah Huckabee Sanders said in a statement.
Mr. Trump has weathered fierce criticism of his use of tariffs to force China to deal, including from the Business Roundtable.
Trump also said he would shortly be providing formal notice to Congress that he will terminate the North American Free Trade Agreement, giving lawmakers six months to approve the replacement he signed Friday.
According to an official White House statement, China "agreed to start purchasing agricultural product from [U.S.] farmers immediately".
Xi Jinping. Photo: G20 Argentina, via Flickr.
In a White House press release, Trump was quoted as saying that this was an incredible and productive meeting with unlimited possibilities for both the United States and China.
Many protesters took aim at Trump, chanting, "Go away Trump" and creating effigies of the U.S. president, such as this rendition above made of recycled materials.
Many US automakers build their cars in China, but for some the tariff hikes have hit sales.
The U.S. president is facing pressure from lawmakers on both sides at home to take a tougher stance against the prince, rather than defend him as a reformer and a facilitator of lower oil prices for the U.S. economy. Shares are advancing in Asia following the meeting between Presidents Donald Trump and Xi Jinping. They are scheduled to meet over dinner on Saturday as they seek to keep trade tensions from erupting into a full-throttle Cold War.
"The truce prevented a further increase in tariffs or new tariffs imposed from the USA side". Chris Coons, who serves on the Foreign Relations Committee, said this week.
China did however make some concessions. Ron Wyden and Ohio Sen.
Trump and Xi dined on some local specialties, including grilled sirloin with red onions, goat ricotta, and dates.
As Kudlow said in Washington ahead of the dinner: "If things don't work out in this US-China summit meeting, he will invoke some $267 billion in additional tariffs".
Under Trump's "America First" mantra, addressing trade imbalances with these countries is one of the key agenda in his bid for re-election in the 2020 presidential race, especially after his Republican Party lost a majority in the House of Representatives in the Nov 6 midterm elections.