Bilateral Trade Agreement by USA and China to Ease Tariffs

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"We are either going to have a REAL DEAL with China, or no deal at all - at which point we will be charging major Tariffs against Chinese product being shipped into the United States", Trump wrote on Twitter.

During the talks in Buenos Aires, Trump agreed to delay a scheduled escalation in United States tariffs on many Chinese goods, from 10 percent to 25 percent, that had been set to take effect January 1.

Financial markets surged early Monday celebrating news of the ceasefire, and though by the end of the day the benchmark Dow Jones Industrial Average had given back some gains, it still closed up almost 300 points. "Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina", Trump tweeted.

White House economic adviser Larry Kudlow said the figure was a broad benchmark that would depend on private transactions for USA goods and was subject to market conditions.

"But if a fair deal is able to be made with China, one that does all of the many things we know must be finally done, I will happily sign".

Mr Trump said this week on Twitter that Beijing had agreed to "reduce and remove" tariffs the 40% tariffs it places on USA cars.

China's official statement on weekend trade talks with the US was very light on details, but in the ensuing days, some of the country's state-run media outlets have reported details from the summit and referred to information the government has tried to censor.

At his weekend meeting with Xi in Argentina, Trump agreed to postpone planned US tariff hikes on Chinese imports by 90 days while the two sides negotiate.

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Chinese purchases of the goods collapsed after Beijing imposed tariffs on them in retaliation for U.S. import taxes.

All three sets of tariffs have been imposed pursuant to the U.S. Administration's determination in March under Section 301 of the Trade Act of 1974 ("Section 301") that China's technology transfer and intellectual property ("IP") policies are harming U.S. companies. "And it'll have an incredibly positive impact on farming, meaning agriculture, industrial products, computers - every type of product".

During the meeting on Saturday, Xi and Trump agreed to suspend any new tariffs and 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. Donald Trump and Xi Jinping both decided at the meeting of the G20 to stop the trade war for the period 90 days to stable both country's declining economy. Trump is relying on tariffs, and the threat of imposing them, to force other countries to buy more goods from America.

"This is the first time that we have a commitment from them that this will be a real agreement", Mnuchin said Monday.

"I don't think this meeting, or anything else for that matter right now, is moving towards vehicle tariffs", Kudlow said.

Mr Xi and his most senior officials, including the Commerce Minister and the country's two top diplomats, are in Portugal, and due back in China on Thursday.

Kudlow, director of the National Economic Council, said he, Mnuchin and U.S. Trade Representative Robert Lighthizer held private meetings in Argentina with China's Vice Premier Liu He, who told them Beijing would move quickly on its new commitments.

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