Trump Agreed not to Raise Duties on China from January 1 to 25%
OREANDA-NEWS Donald Trump has agreed not to raise duties on China from 10 to 25% since January 1, White House press Secretary Sarah Sanders said.
However, the US warned that if the next 90 days will not reach an agreement with China on some trade issues, the duties will increase to the previously planned level.
Also, according to Sanders, China has agreed to buy a "very significant" amount of goods from the US to reduce the trade imbalance.
"China will agree on the purchase of a still uncoordinated, but very significant amount of agricultural, energy, industrial and other products from the United States to reduce the trade imbalance between the countries," she said.
Sanders said that China has agreed to buy agricultural products of American farmers "immediately".
On the sidelines of the G20 summit in Buenos Aires, Donald Trump met with Chinese President XI Jinping. It lasted 2.5 hours. On it, in addition to the refusal to impose duties, the parties agreed to intensify negotiations for the abolition of all additional tariffs.
Also, in particular, the Chinese leader agreed to refer fentanyl (opioid analgesic) to substances whose distribution is controlled by law. According to the statement, this means that people selling this substance in the US will be subject to the maximum punishment under the law in China.
In addition, XI Jinping said that he was ready to approve the previously unapproved deal on the acquisition by the American manufacturer of processors and components for mobile devices Qualcomm of the Dutch semiconductor manufacturer NXP Semiconductors, which did not take place because the companies failed to obtain permission from the Chinese market regulator State Administration for Market Regulation (SAMR). SAMR's approval was necessary to close the deal, as China accounts for almost two-thirds of Qualcomm's revenue. The head of China said that he wants to consider this agreement once again.
Trump called the meeting with his Chinese counterpart "beautiful" and "productive". In turn, Chinese foreign Minister Wang Yi noted that the conversation was held in a friendly and sincere atmosphere, and the negotiations were extremely positive. According to him, the leaders agreed that the relations between the two countries must be established, and they will be established.
In summer, the US imposed duties of 25% on imports of 818 items from China with a total supply of 34 billion dollars a year. As a counter-measure, Beijing imposed a 25% duty on imports of an equivalent volume of us goods on the same day.
At the end of September, new us duties of 10% on goods from China with an import volume of $ 200 billion a year came into force. China imposed duties of 10% and 5% on us imports of $ 60 billion.