China says it will carry out tariff cease-fire with US

Shanghai skyline at night. Source Shutterstock

Managing Director of the International Monetary Fund (IMF) Christine Lagarde called the desire of Chinese President Xi Jinping and US President Donald Trump to engage in talks to resolve a trade dispute between the two countries a "significant progress".

The global economy was already showing signs of a slowdown when President Donald Trump reminded the world of his love of tariffs and sent a chill through financial markets.

Only a day after this truce was stuck, Trump took to Twitter and sowed confusion over his real intentions, tweeting, "I am a Tariff Man".

German automakers said after the meeting they told Trump they planned to boost US investments, but warned they would be unable to do so if the administration imposed new tariffs. While toy makers in China such as Lung Cheong haven't been hit by the USA tariffs so far, they are nervous about the fallout should the two nations fail to find common ground in the next three months.

He told reporters that China had said it was willing to "expand imports according to the needs of its domestic market and people, including importing marketable products from the USA to gradually ease the trade imbalances", adding that both sides had agreed to open their markets to each other.

In return, Washington said China would purchase "very substantial" amounts of USA agricultural, energy, industrial and other products.

The two sides will negotiate structural changes to forced technology transfer, intellectual property protection, cyber-intrusions and cybertheft, services and agriculture, according to the White House.

"Ninety days is very little time to fix these perennial issues", said Bill Adams, senior economist at PNC. But Kudlow acknowledged on Tuesday that so far they haven't seen any evidence of concrete steps being taken.

The ministry vowed to start implementing "specific matters" that were agreed - saying "the sooner the better" - but did not provide any details.

However he offered no new details on what China had agreed to with the United States. Do you have any assessment of the meeting this time? -China agreement in Buenos Aires as an historic breakthrough that would ease trade tensions and potentially reduce tariffs.

BMW, the largest exporter of American-made vehicles has been planning to boost output of utility vehicles from its Spartanburg, South Carolina plant with the launch of its new flagship, the X7 SUV - many of them bound for China.

The two leaders, who met on the sidelines of a Group of 20 summit in Argentina, also made a decision to hold off on new tariffs and give negotiators three months to strike an agreement. American media reports the Dow Jones Industrial Average fell by 200 points after those tweets.

BMW AG said in a statement that it plans to invest $600 million more at its Spartanburg plant in SC through 2021 for future generations of the BMW X models and will create 1,000 more jobs by 2021.

Trump added China would roll back tariffs of 40% on cars.

In the meantime, the outlines of the agreement remain hazy and in some cases confusing.

"Free trade has made the success story of BMW in the U.S. 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.

Trump has argued that China for decades has abused global trade rules to lure away United States jobs, steal USA intellectual property, subsidise its own companies, and strong-arm U.S. firms.

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