G20 Summit: Trump, Xi agree to suspend new trade tariffs

Written by December 2, 2018 12:46

Buenos Aires: The US President Donald Trump and Chinese President Xi Jinping have agreed not to impose new tariffs from January 1, 2019, following their “highly successful” dinner meeting on the sidelines of the annual G-20 Summit at Buenos Aires on Saturday.

They have also decided to take steps to address the trade disputes, which over the past few months had threatened to spill over into a trade war between the world’s two largest economies, a PTI report said.

During the meeting, Trump agreed that on January 1, 2019, he will leave the tariffs on USD 200 billion worth of product at the 10 per cent rate, and not raise it to 25 per cent at this time, while Xi agreed to purchase substantial amount of US products to reduce the trade deficit between the two countries.

“This was an amazing and productive meeting with unlimited possibilities for both the US and China. It is my great honour to be working with President Xi,” Trump said in a statement released by the White House after the dinner talks between the two leaders.

Important resolutions taken at the dinner meeting:

# Chine will designate Fentanyl as a Controlled Substance, meaning that people selling Fentanyl to the United States will be subject to China’s maximum penalty under the law.

# China will purchase ‘very substantial’ amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between the two nations.

# Trump and Xi 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 countries will push to complete negotiations within the next 90 days.

# President Trump, along with President Xi and North Korean leader Chairman Kim Jong Un, to ensure a nuclear free Korean Peninsula.

# China open to approving the previously unapproved Qualcomm-NXP deal.

Also Read: China turns to India to fight against trade war with US