After several months of trade war escalation between the U.S. and China, a temporary truce has been reached, following Saturday’s presidential meeting between between the countries’ leaders.
Giving themselves 90 days to negotiate some solutions to over a hundred issues, the U.S. trade team led by U.S. Trade Representative Robert Lighthizer will attempt to force structural change in China. If a deal is not reached within 90 days, the U.S. intends to move ahead with its plan of increased tariffs as originally threatened and planned.
China’s foreign ministry says in a statement that the meeting was “very successful,” adding, “The two sides proposed a series of constructive plans on how to properly resolve existing differences and problems.”
There are varying opinions on what the U.S. can realistically achieve in 90 days, but soybean growers are very encouraged by China’s intention to resume the purchasing of U.S. farm products “immediately.” However, as of Monday morning, trade analysts tempered the optimism saying that crop buying won’t happen until China lifts its 25% tariff.
After what many people are deeming a successful weekend for relations between the two countries, President Donald Trump spent the majority of Monday morning tweeting details of the discussions.
My meeting in Argentina with President Xi of China was an extraordinary one. Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!
— Donald J. Trump (@realDonaldTrump) December 3, 2018
Farmers will be a a very BIG and FAST beneficiary of our deal with China. They intend to start purchasing agricultural product immediately. We make the finest and cleanest product in the World, and that is what China wants. Farmers, I LOVE YOU!
— Donald J. Trump (@realDonaldTrump) December 3, 2018
My meeting in Argentina with President Xi of China was an extraordinary one. Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!
— Donald J. Trump (@realDonaldTru) December 3, 2018
China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.
— Donald J. Trump (@realDonaldTrump) December 3, 2018