It was announced on Saturday after President Trump and Chinese leader Xi Jinping met over dinner that the two countries agreed upon the 90-day truce in order to work out trade differences. "My meeting in Argentina with President Xi of China was an extraordinary one", President Trump tweeted.
The president's optimistic comments came one day after stock prices around the world plunged in response to a series of tweets he posted on Tuesday, warning a fragile accord between the two countries could crumble. In a series of Tuesday morning tweets, the president showed optimism about reaching a "fair deal", but stressed that he is "a Tariff Man" if talks fail.
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.
In addition, Treasury Secretary Steven Mnuchin said on Tuesday on the Fox Business Network that China agreed to buy $1.2 trillion of US products.
Such a move would have led to further tariffs on imports from the U.S.to China and vice-versa. We make the finest and cleanest product in the World, and that is what China wants.
According to the White House, China has agreed to buy a "very substantial" amount of agricultural, energy, industrial and other products from the U.S. to reduce a yawning trade gap, as well as to negotiate over Washington's assertions that Beijing steals American technology.
The 90-day truce in the escalating trade war between the USA and China came during a dinner meeting between the two presidents following the G-20 summit of the world's industrialized and emerging economies in Buenos Aires.
Trump, however, has threatened to slap tariffs on auto imports from Europe and other countries, citing US trade deficits with those nations. "And it'll have an incredibly positive impact on farming, meaning agriculture, industrial products, computers - every type of product".
Chinese State Councilor Wang Yi told reporters, "The two presidents agreed that the two sides can and must get bilateral relations right".
Trump again claimed Tuesday that more tariffs on China would actually help the U.S. He contended that he has made China "pay for the privilege" of raiding "the great wealth of our Nation".
Trump's words had the effect of making the already vague and uncertain weekend agreement seem even less likely to produce a long-lasting trade accord. Those lower rates suggested that investors expect the US economy to slow, along with global growth, and possibly fall into recession in the coming year or two. Should China remove the tariffs now, US soybean would likely still be uncompetitive in the global market as harvest season approaches for the crop in South America.
'The actual amount of concrete progress made at this meeting appears to have been quite limited, ' Alec Phillips and other economists at Goldman Sachs wrote in a research note.
Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer, chief economic adviser Larry Kudlow and other administration officials were meeting individually with executives from each of the three automakers.
"China's discussed these things with the US many times down through the years and the results have not been very good", he said.