US wants ‘concrete’ trade action from China

Donald Trump threatened to slap a range of import penalties on Chinese products if they didn't make major changes in their economic relationship with the US

His comments relate to the 40% tariff China imposes on U.S. vehicle imports, which were brought in as part of the trade battle in July.

The US promised to delay the increase of its tariffs on $200 billion worth of Chinese goods by 90 days.

Risk appetite returned across most markets on Monday as President Donald Trump and his Chinese counterpart Xi Jinping agreed to pause the introduction of new tariffs and intensify trade talks.

"President Xi and I want this deal to happen, and it probably will".

"China has to do this, basically to get room to breathe", said an executive at a state-owned trading house.

"When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so", he said.

While Mnuchin said the president reserves the right to escalate tariffs should negotiations not pan out as planned, he cast the weekend's talks as a breakthrough in the administration's efforts to check China and said the discussion included everything from purchasing more United States goods to intellectual property, to currency manipulation. The changes U.S. officials have sought include forcing Beijing to lower tariffs on United States goods, stop dumping cheap steel and aluminium into foreign markets, and halting the theft of intellectual property, among other things. The Dow Jones industrial average was down 730 points, or 2.8%, on Tuesday morning.

In dealing with China so far, Trump has lived up to his self-ascribed reputation as a "tariff man".

The trade war has taken a toll on auto companies that manufacture in the US, with the makers of Mercedes-Benz and its rival BMW both warning of lower profits this year as tariffs forced them to hike prices in China.

Gen. Jack Keane said Monday on "The Story" that he's in favor of the truce agreed upon between the USA and China, but "it remains to be seen" what results it will yield.

There are significant differences between the two governments over what was agreed at the dinner, according to a side-by-side comparison of their post-meeting statements prepared by Bloomberg.

Trump said China had committed to buying large amounts of US agricultural products and completely removing all tariffs on US automobiles a huge shift from its current 40 per cent penalty although China hasn't confirmed this
‘I am a tariff man’: Trump warns China against raiding ‘great wealth’ of US as trade talks start

Following the Trump-Xi talks, which took place over dinner at the end of the G20 summit, Washington agreed to hold off on Trump's threat to slap 25 per cent tariffs on Dollars 200 billion worth of Chinese goods from January 1, leaving them at the current 10 per cent rate. Trump also threatened to impose tariffs on the remaining $267 billion worth of Chinese goods not now subject to tariffs.

Trump also said in a tweet on Saturday that China had agreed "to reduce and remove tariffs on cars coming into China from the U.S".

His appointment of Lighthizer to lead the talks instead of Mnuchin puts one of the administration's toughest China critics in charge.

The comments by the president and his top advisers over the past 48 hours have only added to China's confusion about their negotiating partners. "Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina", Trump said.

The president's Treasury secretary, Steven Mnuchin, told reporters Monday that there will be "specific changes right away" to help the agricultural industry, even as the majority of the tentative agreement remains to be worked out over a 90-day-period agreed upon between the USA and China.

This was also the first time that the president suggested the negotiating window could be extended.

Washington also expects China to promptly address structural issues including intellectual property theft and forced technology transfers, U.S. officials have said.

"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", Trump said.

The White House said Trump and Xi agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture.

They said they would hold off on imposing additional tariffs for 90 days starting on December 1 while they sought a solution to their trade disputes. "This agreement is a short-term alleviation of trade tensions, but we caution that this is a reprieve rather than a resolution".

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