Buenos Aires, Dec 2: In a major development, US President Donald Trump and Chinese President Xi Jinping on Saturday agreed to halt imposition of additional tariffs on each other's goods after January 1.
The development between the two super-powers, took place after a highly anticipated dinner between Mr Trump and Mr Xi on the sidelines of the G 20 summit in Argentina.
The leaders agreed to stop the introduction of new tariffs and intensify their trade talks, Chinese Foreign Minister Wang Yi told mediapersons here.
“This was an amazing and productive meeting with unlimited possibilities for both the United States and China,” Trump said in the statement. “It is my great honor to be working with President Xi," he added.
"President Trump has agreed that on January 1, 2019, he will leave the tariffs on $200 billion worth of product at the 10 per cent rate, and not raise it to 25 per cent at this time," an official statement said.
"Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10 per cent tariffs will be raised to 25 per cent," the statement added.
"China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries. China has agreed to start purchasing agricultural product from our farmers immediately," the White House said in a statement.
The tariffs, tit-for-tat on each other goods, took earlier this year, with Trump administration slapping tariffs on $250 billion worth of Chinese imports, while Xi's government has put targeted tariffs on $110 billion in US goods.
The Trump administration had threatened to more than double the tariffs it has already slapped on $250 billion worth of Chinese imports, while Xi's government has put targeted tariffs on $110 billion in US goods. The standoff has raised fears among investors and businesses that the global economy could be dragged down by the dispute between the world's two largest economies.UNI