The United States and China reached a 90-day cease-fire in a trade dispute that has rattled financial markets and threatened world economic growth. The breakthrough came after a dinner meeting between President Donald Trump and Chinese leader Xi Jinping at the Group of 20 summit in Buenos Aires.
Trump agreed to hold off on plans to raise tariffs Jan. 1 on $200 billion in Chinese goods. The Chinese agreed to buy a “not yet agreed upon, but very substantial amount of agricultural, energy, industrial” and other products from the United States to reduce America’s huge trade deficit with China, the White House said.
The truce, reached after a dinner of more than two hours Saturday, buys time for the two countries to work out their differences in a dispute over Beijing’s aggressive drive to supplant U.S. technological dominance.
“It’s an incredible deal,” Trump told reporters aboard Air Force One, adding, “if it happens it goes down as one of the largest deals ever made.”
Trump said: “What I’ll be doing is holding back on tariffs. China will be opening up, China will be getting rid of tariffs. … China will be buying massive amounts of products from us.”
In a long-sought concession to the U.S., China agreed to label fentanyl, the deadly synthetic opioid responsible for tens of thousands of American drug deaths annually, as a controlled substance. And Beijing agreed to reconsider a takeover by U.S. chipmaker Qualcomm that it had previously blocked.