Trump says China agrees to ‘reduce and remove’ tariffs on U.S. cars

G20: BRICS slam protectionism as China-US trade war dominate summit

In a tweet Sunday night, US President Donald Trump said China has "agreed" to reduce and eventually eliminate its 40-percent tariff on US-made vehicles.

Trump hit an additional $200 billion of Chinese goods with a 10 percent tariff that had been due to rise to 25 percent on January 1.

The 90-day truce in the escalating trade war between the US and China came during a dinner meeting between the two presidents following the G-20 summit of the world's biggest economies in Buenos Aires. "Ninety days is very little time to fix these perennial issues".

Reuters notes the United States now charges a 27.5 percent tariff on vehicles with a "made in China" label.

One of China's major concerns is US interference in areas it considers "internal" matters. "And we know that", Kudlow said. Trump wrote on Twitter.

"They can not slow walk this, stall this, meander this". They'll notably look at the way China protects intellectual property, its policies on technology transfer, and how it handles cyber intrusions. "People have already started to reconsider their sourcing arrangements", said Larry Sloven, who has been sourcing and manufacturing in China for three decades. He said relations have taken a big leap forward, adding, US farmers will be a very big and very fast beneficiary of the deal after China agreed to purchase more agricultural equipment.

USA markets initially gained more than 1% on Monday, but the enthusiasm dimmed a bit later, as it remained unclear how the two countries will resolve their underlying differences. Eastern time. The S&P 500 jumped 1.3 percent, to 2,797, while the tech-heavy Nasdaq composite rose 1.8 percent, to 7,457. China gets a delay on additional tariffs, while the USA gets greater purchases of agriculture goods while retaining leverage to push for more structural changes to the economy.

Trump and Chinese President Xi Jinping agreed to halt new tariffs during talks in Argentina on Saturday, following months of escalating tensions on trade and other issues.

The appointment of Lighthizer may signify a harder line in talks with Beijing and marks a shift from past practices where Mnuchin had a lead role.

The agreement "is not a ceasefire, it's just a de-escalation".

The trade war has seen the United States and China hit each other with escalating tariffs and U.S. industry groups have openly voiced their concerns about the impact on brands, importers and manufacturers, and consumers.

But whether or not a complete end to tariffs was discussed in Argentina, there was no hint of it in the White House statement.

Top executives from German carmakers Volkswagen, Daimler and BMW are to meet Tuesday with senior USA officials at the White House to discuss the situation, the German news agency DPA reported, citing unnamed sources. The US has its own import tariff on Chinese-made cars, totaling 27.5 percent. The tweet jolted global auto stocks.

Carl Weinberg of High Frequency Economics noted that the diverging messages from Xi and Trump after the meeting were creating doubt about what was agreed. This article is strictly for informational purposes only.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

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