Xi, Trump agree to continue trade talks, cease new tariffs

Xi, Trump agree to continue trade talks, cease new tariffs

"If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%".

In response to the freeze China has pledged to buy farm, energy and industrial goods, to reduce the country's trade surplus with the US.

On Air Force One, Trump told reporters he would "absolutely consider it and probably" accept such a measure.

However, all eyes will now be on the negotiations because if they fail, the US' planned 25 per cent additional tariffs on Chinese goods, due to kick in earlier on Jan 1, will go ahead.

On these issues, US President Donald Trump has taken a stance not shared by most of the other leaders.

Referencing Mr Trump's fiery rhetoric, he said, "it's all about actions as opposed to words ... as long as there's no escalations, markets will generally look past the words".

"I think China compromised more".

China's efforts to tackle the abuse of fentanyl-like substances have won positive comments from across the globe and Beijing has chose to list all fentanyl-like substances and their precursors as controlled substances, Wang said.

But Brad Setser, a former Treasury official and now senior fellow at the Council on Foreign Relations in Washington, told Bloomberg that much remains to be done.

As part of the deal, Xi agreed to deliver structural reforms within the next three months.

The truce is only partial.

Trump imposed 10 percent tariffs on $200 billion worth of Chinese goods in September.

Earlier this year, the Trump administration imposed new tariffs on almost $250 billion worth of Chinese goods, to force Beijing to end its unfair practices. USA agreed to postpone the additional tariffs.

The meeting was the first face-to-face encounter between the leaders in more than a year, a period that saw Trump impose tariffs on billions of dollars in Chinese imports in a bid to force Beijing to halt trade practices the US considers unfair.

Trump said Bush's death put a "damper" on what he described as a "very important meeting" with Xi.

President Donald Trump met with Chinese President Xi Jinping at the G20 Summit in Buenos Aires, Argentina on Saturday.

It was the first meeting between Xi and Trump since the US president paid a state visit to China in November past year.

Grilled sirloin was served, along with ample wine, and caramel rolled pancakes topped with chocolate and cream for dessert, according to the White House.

It may have been tacked on to the end of two days of G20 diplomacy, but it was in many ways the main event of the weekend.

Financial markets, spooked by the potential impact on the world economy, had hoped that at least some kind of truce could be declared. He also held a series of formal and informal meetings and will continue those sit-downs Saturday, including with German Chancellor Angela Merkel.

"We are unsure how serious the USA administration is about the "ceasefire" declaration", ANZ Research said. "Both sides avoided the worst-case scenario".

Earlier on Saturday, the leaders of the world's top economies called for WTO reform in their final summit statement. That alone, however, won't satisfy Trump's most hawkish advisers on trade, including US Trade Representative Robert Lighthizer and adviser Peter Navarro.

The two sides also agreed to enhance cooperation on law enforcement and combating illicit drugs, including the synthetic drug fentanyl, Wang said. If those negotiations aren't successful, then it's tariff time.

He has prided himself on building a good relationship with the Chinese leader, even though he acknowledges it may have trouble surviving the growing crisis.

The end of Trump's latest tense foray into worldwide diplomacy comes as America prepares to say a final farewell to former president George H.W. Bush, who died on Friday at the age of 94.

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