Published: Wed, December 05, 2018
Money | By Hannah Jacobs

Trump claims 'BIG leap forward' in China trade talks, but details unclear

Trump claims 'BIG leap forward' in China trade talks, but details unclear

"President Xi and I want this deal to happen, and it probably will", Trump said in a post on Twitter.

Trump nevertheless praised himself for the dinner, and abandoned nuance in claiming on Twitter that China had agreed to immediately buy more USA farm products, in addition to dropping vehicle tariffs.

Trump's economic team has spun his knee-jerk protectionism as a tactic created to negotiate "better" trade deals - but so far, those better trade deals don't seem to be stronger than the status quo ante.

Despite Mnuchin's earlier comments on President Trump leading trade negotiations with China, .

According to the White House, the US will still keep in place $200 billion of tariffs on Chinese imports but will not increase those tariffs from 10 percent to 25 percent after the start of the year as originally planned. "Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina", Trump tweeted.

In dealing with China so far, Trump has lived up to his self-ascribed reputation as a "tariff man". But it raised its tariff on US cars to 40 percent earlier this year in retaliation for Trump's tariffs on Chinese goods. In fact, the only definite thing to seemingly come out of the summit is the United States vowing to hold off on raising threatened tariffs for 90 days.

"China is supposed to start buying Agricultural product and more immediately", Trump wrote. "President Trump's economically illiterate trade commentary won't help - and is driving American allies to ramp up their own trade barriers to retaliate". The move is a significant turnaround in relations between the US and one of its biggest customers for farm products.

Like this story? Share it with a friend! The White House and Beijing have essentially reached an agreement to pause the trade war for 90 days while the two sides try to reach a formal trade deal. Trump said on Tuesday that Lighthizer would work closely with Mnuchin, Kudlow and trade adviser Peter Navarro.

After months of a back-and-forth trade war between the USA and China, President Trump declared on Monday that Beijing had agreed to remove a 40 percent auto tariff on American vehicles.

"It hasn't been signed and sealed and delivered yet", Kudlow said.

Instead, Kudlow said a proposed gesture to reduce auto tariffs to zero would serve as a "litmus test" on China's commitments to fulfill a broad strokes agreement reached between the two leaders.

Trump has argued that China for decades has abused global trade rules to lure away U.S. jobs, steal USA intellectual property, subsidise its own companies, and strong-arm United States firms.

-China trade war, only to fall sharply on Tuesday as presidential tweets and contradictory messages from senior administration officials indicated that the "deal" might be less firm than previously thought.

What is mentioned by both sides is China's agreement to more strongly control the trade in the opioid Fentanyl.

No one's quite sure how Trump plans to get his way (and, in turn, pass on the cost of these tariffs to the US people), but what's also grabbing attention is how Trump phrased one of his tweets.

The negotiations for a final agreement have already begun, Kudlow said.

Moreover, none of the commitments that US officials said had been given by China, including reducing its 40 percent tariffs on autos, were agreed to in writing and specifics had yet to be hammered out.

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