Trade war, day 153: China affirms ‘very successful’ trade meeting
- Author: Wendy Palmer Dec 07, 2018,
Dec 07, 2018, 0:22
Her arrest came on the same day U.S. President Donald Trump and Chinese President Xi Jinping reached an agreement on a 90-day truce on their tit-for-tat tariff hikes in order to forge a new trade pact.
While Asian equities dropped yesterday in the wake of the biggest slide in stocks on Wall Street since the mid-October downdraft, U.S. futures advanced after the statement from China echoed Trump's optimism over trade talks. Trump's National Economic Council advisor Larry Kudlow tried to strike an update note while acknowledging to Fox News a deal "hasn't been signed and sealed and delivered yet".
The new tweets, which came the day after the Dow Jones Industrial Average fell almost 800 points, won't have any immediate effect on Wall Street: Markets are closed Wednesday, a day of national mourning for the late president George H.W. Bush.
Senior US and EU officials blamed each other on Wednesday (17 October) for a lack of progress in ongoing trade talks, reviving the possibility of fresh tariffs on European cars, said the American representatives.
Trump on Tuesday renewed his threats to impose tariffs on Chinese goods if a broader trade deal isn't reached over the next three months.
One particularly damning tweet by Trump boasted, "I am a Tariff Man". "But if not remember".
"I don't think this meeting or anything else for that matter, right now, is moving toward vehicle tariffs", Kudlow told reporters Monday. "Ultimately, I believe, we will be making a deal - either now or into the future", Trump wrote in a post within minutes of the Commerce Ministry statement.
In a brief statement on Wednesday attributed to an unidentified spokesperson and posted on its website, China's commerce ministry said it was "confident" a trade agreement with the U.S. could be reached "within 90 days".
The U.S. president a day earlier had said the ceasefire could be extended but warned tariffs would be back on the table if the talks failed and that he would only accept a "real deal" with China. He added that the German automakers "wouldn't be coming to the table here to talk to us unless the president had auto tariffs on the table".
The Chinese silence has prompted questions about what Mr Trump said was a promise by Beijing to buy more American goods and negotiate over U.S. complaints that it steals American technology.
A Chinese official told Reuters officials were "waiting for the leaders to return" before publicizing details. Fentanyl, mixed in with heroin, has caused a spike in drug overdoses in the U.S.
Kudlow and Trump also disagreed on when this 90-day trade war truce will begin. Germany, in consultation with the United States, has already taken steps to limit the ability of Chinese firms to buy high-tech German companies.
"Free trade has made the success story of BMW in the USA possible", the company said in a statement Tuesday, adding that 70 percent of the cars made in Spartanburg past year were exported to more than 120 countries. It also would begin buying products from USA farmers "immediately".
While Trump hails tariffs as money-makers, critics note that tariffs are mostly paid for by U.S. consumers as the costs of Chinese imports rises.
In return, Washington said China would purchase "very substantial" amounts of U.S. agricultural, energy, industrial and other products.
That includes more purchases of USA farm products, which Trump - seemingly trying to remind Xi - has said will begin "immediately". -China agreement in Buenos Aires as an historic breakthrough that would ease trade tensions and potentially reduce tariffs.