USA and China agree to stop trade tariffs for 90 days and to resume talks

US President Donald Trump and his Chinese counterpart Xi Jinping have agreed to halt new trade tariffs for 90 days to allow for talks, the US says. The two men met in Buenos Aires after the G20 summit for their first talks since a trade war erupted this year. China says they agreed not to impose any new trade tariffs after 1 January.

The BBC reports that at the summit earlier on Saturday, the G20 leaders agreed a joint declaration that notes divisions over trade but does not criticise protectionism.

Ahead of the G20, Mr Trump had told US media he expected to go ahead with plans to raise tariffs on $200bn (£157bn) of Chinese goods – first introduced in September – from 10% to 25%, starting in January. The White House says this move is now suspended for 90 days but adds, “If at the end of this period of time, the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent.”

In return, the White House adds, China agreed to buy an unspecified but “very substantial” amount of agricultural, energy, industrial and other products. Chinese state TV said earlier: “No additional tariffs will be imposed after January 1, and negotiations between the two sides will continue.”

The FT reports ‘Donald Trump, the US president, has agreed to hold off on imposing higher tariffs on Chinese imports next year after reaching a deal with Xi Jinping, China’s president, to stall the trade war afflicting both countries and rattling financial markets. The temporary ceasefire was reached after a working dinner involving the two presidents and their top advisers in Argentina, following the end of the G20 world leaders summit on Saturday.  According to the terms of the deal outlined by the White House, the US will not ratchet up tariffs on more than $200bn of Chinese goods from 10 per cent to 25 per cent in January, as had been planned.”