Commercial 'Ceasefire' Between China and the U.S.; Trump and Xi Reach Agreements

According to the senior advisor to the White House and Chinese media, the meeting between the leaders of the two largest economies, which many were eagerly awaiting, has gone 'very well.' The U.S. will not impose new tariffs on Chinese goods in January. Statements made after the working dinner between Donald Trump and Xi Jinping in Buenos Aires, Argentina, suggest that the two sides may be reducing economic tensions; tensions that have been described as the precursor to a 'trade war' between the two countries. The escalating tensions began with new tariffs imposed by Washington on Chinese goods, followed by retaliatory actions from Beijing, and continued with warnings and threats from both sides. China referred to the new U.S. tariffs as the 'largest trade war in history.' Tariffs and disputes have significantly impacted global markets, which is why many were awaiting the outcome of the Trump-Xi meeting. Trump expressed hope at the beginning of the meeting that the two sides would achieve 'very good results' for both countries. Prior to this meeting, he had also stated that he saw 'good signs.' After the working dinner, Larry Kudlow, the senior economic advisor at the White House, told reporters that the meeting was 'very good.' The first official reaction following the working dinner came from China's Foreign Minister, who described the negotiations as 'very positive and constructive.' Wang Yi, the Chinese Foreign Minister, stated that the negotiations were conducted 'at an equal level' and could lead to a 'win-win solution for the problems.' Wang Yi added that China would increase its imports from the United States to reduce the trade deficit between the two countries, and Beijing and Washington would continue negotiations to ensure 'stable and promising growth' for both countries. The U.S. trade deficit with China reached an unprecedented $375 billion last year, a point that has been repeatedly criticized by Donald Trump. Chinese media reported on Sunday, December 2, that the two leaders agreed not to impose new tariffs after January 1. Shortly thereafter, international media, citing the White House, reported that the two leaders had agreed to a 90-day ceasefire regarding the imposition of new tariffs to continue trade negotiations. Sarah Sanders, the White House spokesperson, stated that Trump agreed not to impose new tariffs starting January 1, and the two countries would 'immediately begin their negotiations for fundamental changes.' The tariffs and economic tensions between the two countries have led the International Monetary Fund to warn that the continuation of this trend will have consequences that 'everyone will suffer from.' The IMF also warned that the 'trade war' between China and the U.S. could particularly pressure developing countries and make their economies vulnerable.