Published: Wed, December 05, 2018
Business | By Eloise Houston

DEVELOPING: US-China trade uncertainty fuels market plunge

DEVELOPING: US-China trade uncertainty fuels market plunge

U.S. President Donald Trump, U.S. Secretary of State Mike Pompeo, U.S. President Donald Trump's national security adviser John Bolton and Chinese President Xi Jinping attend a working dinner after the G20 leaders summit in Buenos Aires, Argentina December 1, 2018.

"We don't yet have a specific agreement on that", Kudlow said on a conference call with reporters.

China, for its part, also agreed to offset its massive trade imbalance with the U.S.by buying more, but not yet specified amounts, of energy products, agricultural, industrial and other products. "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", the statement said.

White House economic adviser Larry Kudlow says there is no "specific agreement" between the United States and China that would address China's tariffs on US auto imports but says he "expects" those duties to go to zero.

China was already hit with $50 billion worth of tariffs earlier this year.

The editor in chief of The Daily Wire played "Free Market Avenger" to "Tariff Man" on Tuesday after the president's trade-war rhetoric with China shook the stock market.

According to the White House, the US will still keep in place $200 billion of tariffs on Chinese imports but will not increase those tariffs from 10 percent to 25 percent after the start of the year as originally planned.

Officials in Beijing did not respond to requests for an explanation and neither did the Chinese embassy in Washington. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. But if a deal doesn't happen, he reminds his followers, "I am a Tariff Man". "It will always be the best way to max out our economic power", he said. In a 1990 interview with Playboy, the then real-estate investor said imposing tariffs on Japanese cars would be the first order of business if he ever won the presidency.

However, there are differences in both countries' official accounts of what was agreed.

"The window of doing bean business to China is getting really skinny, nearly to the point where it is closed", said Roy Huckabay, of Linn and Associates, a Chicago brokerage.

China's tariffs on US soybeans mean they are $60 per tonne more expensive than those from top global supplier Brazil, which is due to begin harvesting a record crop in a few weeks time.

In a subsequent tweet, Trump said he would "happily sign" a "fair deal" that addresses United States concerns, should one be reached with Beijing.

Trump and Xi also agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture, according to the White House statement. At the end of the day, two realities remain: the U.S.is now an energy (oil and gas) producing super power alongside the ranks of Russian Federation and Saudi Arabia, while China, conversely, is the world's largest energy consumer, which gives it less leverage in ongoing trade and even geopolitical negotiations and developments.

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