Trump and Xi Jinping call 90 day truce in “tit for tat” trade war

President Trump and China’s Xi Jinping have agreed a temporary truce in the bitter trade tariffs war between the two nations.

Over dinner at the G20 summit, the two reached the agreement that they would not increase tariffs for 90 days to allow for talks.

Failure to strike a deal would have seen tariffs on $200bn worth of Chinese goods rise from 10 per cent to 25 per cent at the start of next year, and would have opened the way for tariffs on additional Chinese goods.

A tweet from the US president has also suggested that Beijing will reduce and remove the 40 per cent tariffs it places on US cars imported into China. If confirmed, it will signal a break-through in the trade war that has been increasing in tension since the summer.

The trade war has so far seen the US and China hit each other with escalating tariffs in an attempt to make their home-made goods more competitive.

The US says its tariff policy is a response to China’s “unfair” trade practices and accuses it of intellectual property theft.

Since july, the US has hit China wil tariffs on $250bn worth of goods. China has retaliated with duties on some £110bn goods over the same period.

In a statement, the White House said US tariffs on Chinese goods would remain unchanged for 90 days, but added: “If at the end of this period of time, the parties are unable to reach an agreement, the ten per cent tariffs will be raised to 25 per cent.”

Both sides have pledged to “immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft,” according to the White House.

The truce does not affect the current duties imposed by both China and the US. 

About Robert Hutchins

Robert Hutchins is the editor of Licensing.biz and ToyNews. Hutchins has worked his way up from Staff Writer to the position of Editor across the two titles, having spent almost eight years with both ToyNews and Licensing.biz, and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@biz-media.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobGHutchins if ranting is your thing...

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