China vows quick action on USA trade promises: 'The sooner the better'

Market Experts React To G20 Summit

Daimler chairman Dieter Zetsche told reporters that additional USA investments are contingent on conditions remaining the same. And while he said the "history is not great" with China on trade, he was optimistic.

At the sidelines of last weekend's G20 summit, Mr Trump and Mr Jinping agreed not to increase tariffs for 90 days to allow negotiations to take place. By market close Tuesday, the Dow had plummeted almost 800 points.

The White House statement listed what it claimed China had promised to do. Crude oil, which has been hammered by worries that slowing global growth could hurt demand, spiked more than 4%. His remarks renewed fears that the Fed may miscalculate and raise rates so high or so fast as to depress growth.

Trump, however, also threatened to impose tariff on China, if failed to reach an agreement with the given deadline.

The US trade deficit with China was $335 billion past year and many manufacturers rely on inputs from the world's number two economy, so eliminating the deficit would be an extraordinary goal. The statement did not mention Trump or Xi, however the state news agency Xinhua later said the ministry statement was hailing their meeting.

Kudlow said he did not think that vehicle tariffs were imminent, though he added that they were in Trump's "quiver of arrows". "President Xi and I want this deal to happen, and it probably will". The two countries have now agreed to a 90-day truce to work out a broader trade deal.

CHINESE PURCHASES OF US GOODS The White House said China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other products from the United States. Ultimately, I believe, we will be making a deal - either now or into the future. We make the finest and cleanest product in the World, and that is what China wants.

But details about the likelihood of progress and specifics of the agreement have been slim.

U.S. President Donald Trump, who rattled global markets Tuesday after declaring himself "a Tariff Man", predicted in a series of tweets Wednesday the United States and China would negotiate a new trade deal.

Trump tweeted late Sunday that China had agreed to "reduce and remove" its 40% tariff on cars imported from the U.S. Treasury Secretary Steven Mnuchin said Monday that there was a "specific agreement" on the auto tariffs.

It explained that China and the USA had agreed to work together on issues including widening market access, protecting intellectual property rights, avoiding forced technology transfers and jointly fighting against cyber theft. If the administrations don't reach an agreement on the matters in the next 90 days, tariffs will rise to 25%.

Trump agreed he will leave the tariffs on $200 billion worth of Chinese products at 10 percent, and not raise it to 25 percent as he has threatened to do January 1, according to a White House statement.

Trump has said China is supposed to start buying agricultural products immediately and cut its 40 percent tariffs on US auto imports.

Analysts also note that the two countries remain far apart on the sharpest areas of disagreement, which include Beijing's subsidies for strategic Chinese industries, in addition to forced technology transfers and intellectual property theft.

Chief economic adviser Larry Kudlow acknowledged those challenges in remarks Tuesday morning.

"Very strong signals being sent by China once they returned home from their long trip, including stops, from Argentina", he wrote. "However, I will say this: President Xi has never been this involved".

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