USA agrees to suspend new China tariffs for 90 days

USA agrees to suspend new China tariffs for 90 days

USA agrees to suspend new China tariffs for 90 days

US President Donald Trump and his Chinese counterpart Xi Jinping met Saturday at a high-stakes dinner to try and pull the world's top two economies from the brink of a full-fledged trade war.

If no deal is reached within 90 days, both parties agreed that the 10 percent tariffs will be raised to 25 percent, the White House said.

"This was an fantastic and productive meeting with unlimited possibilities for both the United States and China", Trump said in a statement released after Saturday's meeting. China also agreed to purchase a "very substantial" - though unspecified - amount of farm and industrial products from the U.S.

Australian shares have surged at the start of the new trading week, with energy and materials stocks up by more than two per cent in the wake of a 90-day truce on tariffs between China and the US.

Chinese Foreign Minister Wang Yi said the atmosphere at the meeting was friendly and honest.

They also agreed to maintain close exchanges in various forms to jointly chart the course for the development of China-U.S. relations, and pledged to hold further exchanges of visits at an appropriate time.

There was no immediate USA confirmation of the outcome of the talks, but Chinese state TV said: "No additional tariffs will be imposed after January 1, and negotiations between the two sides will continue".

The news is likely to bring cheer Monday to global financial markets, which have been sensitive to the escalating trade battles between China and the United States.

The benchmark S&P/ASX200 index was up 89.1 points, or 1.57 per cent, at 5,756.3 at 1030 AEDT on Monday, while the broader All Ordinaries was up 89.7 points at 5,839.0 after the weekend's trade breakthrough between US President Donald Trump and Chinese leader Xi Jinping at the G20 summit in Argentina. En route from Buenos Aires on Air Force One, the president told reporters that he would soon notify Congress that he's abandoning the North American Free Trade Agreement.

Chinese state TV says agreement has been reached with the USA not to impose any additional trade tariffs after 1 January and talks will go on. In its turn, Beijing responded with tariffs on $110 billion of U.S. goods.

Ahead of what was seen as the most important meeting of USA and Chinese leaders in years, both sides said differences remained, and the outcome of the talks were uncertain.

G-20 leaders also agreed that the global trading system "is now falling short of its objectives" and agreed to take stock of proposed overhauls at next year's summit in Japan.

After the meeting, White House economic adviser Larry Kudlow told reporters that the meeting went "very well". Mr. Trump also threatened tariffs on another $267 billion of imports, effectively taxes all goods from China.

"The relationship is very special", he said.

The symbolism ahead of the Xi meeting was clear: the Trump administration has looked to find common cause with both nations in countering China's regional hegemony.

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Fentanyl and other synthetic opioids now rank as the deadliest abused drug in the US, accounting for nearly half of the more than 70,000 overdose deaths in 2017, according to the Centers for Disease Control and Prevention.

The two sides also agreed to enhance cooperation on law enforcement and combating illicit drugs, including the synthetic drug fentanyl, Wang said.

The White House said that Xi would consider approving a possible $44 billion deal for Qualcomm purchase NXP Semiconductors NV if it's brought to him again.

President Trump stated: "This was an unbelievable and productive meeting with unlimited possibilities for both the United States and China. It is my great honor to be working with President Xi", Trump said in the statement.

The announcement was made by White House spokeswoman Sarah Sanders on Saturday as the summit closed.

However, the US affirmed its "strong commitment" to economic growth and energy access and security, utilizing all energy sources and technologies, while protecting the environment.

"Meanwhile, the United States side will actively address China's concerns on economic and trade issues", wrote Xinhua. The United States instead reiterated Trump's decision to withdraw from the accord.

"Beijing at best gets a temporary reprieve from additional tariffs, but was unable to get the agree to return to "business as usual", he said.

China responded by imposing its own tariffs. Numerous countries have filed litigation at the WTO to contest the levies. "So at this time it was acceptable for China to maintain some bottom lines while making concessions", Hua said.

The meeting lasted for two and a half hours, much longer than planned, said Chinese State Councilor and Foreign Minister Wang Yi at a briefing on the closely-watched Xi-Trump meeting.

European officials said a reference to refugees and migration - a sensitive issue for Trump's administration - was excised to ensure consensus.

The other members of the group reaffirmed their commitment to implement the Paris deal and tackle climate change, taking into account their national circumstances and relative capabilities.

Russian President Vladimir Putin said later on Saturday he had explained his position in the Ukraine crisis to USA leader Donald Trump at a G20 summit, and remained open to proper talks.

The dinner was moved up by about an hour after US leader's schedule opened up on Saturday.

Earlier in the day, the G20 leaders agreed to reform the World Trade Organisation, a big win for Trump who has heavily critisised it. The Russian leader had a more productive dialogue in Buenos Aires with Saudi Crown Prince Mohammed bin Salman.

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