President Trump dove deep into trade negotiations with Chinese President Xi Jinping and seemed to score some success. Trump announced a major ceasefire as the two have reportedly agreed to a major new trade deal.
Starting the G20 Summit in Japan, Japanese Prime Minister Shinzo Abe said: “The G-20 nations, as the countries that lead the world economy, have a responsibility to squarely face global problems and to come up with solutions through frank dialogue.”
— Donald J. Trump (@realDonaldTrump) June 29, 2019
Trump took this message to heart and met with Jinping for more that 80 minutes to work up the new agreement. Per the new deal, Trump will put off implementing new tariffs in exchange for China’s agreement to purchase more U.S. goods.
From the Associated Press:
At the outset of their meeting, Trump told Xi he wants to “even it up in respect to trade,” and that he thought it would be very easy to do.
The two sides have levied billions of dollars’ worth of tariffs on each other’s products, and talks on resolving the longstanding issues had stalled in May.
Afterward, Trump said the talks were “back on track.” He said he had decided to hold off on imposing more tariffs on Chinese exports, while China planned to buy more American farm products.
Japan's Group of 20 summit meeting wraps up as President Donald Trump and his Chinese counterpart Xi Jinping agree to restart talks on the trade war between the two largest economies. https://t.co/PZPEb59aPt
— The Associated Press (@AP) June 29, 2019
And, Reuters reports:
The two sides are “right back on track,” Trump said on Saturday after an 80-minute meeting with Chinese President Xi Jinping on the sidelines of the G20 summit in Japan. The new tariffs he had been threatening to levy on about $300 billion of Chinese exports are being put on hold for now, while the People’s Republic will buy an unspecified amount of additional American agricultural products. Trump also added that U.S. companies could keeping selling products to Chinese telecom equipment maker Huawei even though his administration put the company on an export blacklist last month.
It is all reminiscent of how last year’s G20 summit in Buenos Aires ended. Trump would refrain from raising tariffs, the Chinese would buy more from American farmers, and talks would resume. Negotiations later abruptly collapsed and Trump said in early May he would again hike taxes on Chinese goods.
The stakes were much higher this time. Slapping additional tariffs on such a large quantity of goods would have been a serious economic blow for both countries. New forms of Chinese retaliation also awaited.
During a 80-minute meeting with Chinese President Xi Jinping, Trump agreed not to proceed with plans to impose a 25 percent duty on another $300 billion worth of Chinese goods https://t.co/mVT1vhJPq6
— POLITICO (@politico) June 29, 2019
Reuters also reports Wang Xiaolong, special envoy of G20 affairs of the foreign ministry and director general of the Department of International Economic Affairs, said Chinese and American interests are greater than their differences as the two countries look forward to working with one another.