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United States Businesses China

Trump Agrees Not To Raise Tariff Levels on Chinese Goods; China Agrees To US Purchases. Two Sides To Start Broader Negotiations. (wsj.com) 322

U.S. President Donald Trump and Chinese President Xi Jinping agreed Saturday to keep their trade war from escalating with a promise to temporarily halt the imposition of new tariffs [the link may be paywalled; alternative source], as the world's two largest economies negotiate a lasting agreement. China also agreed to further market opening, its foreign minister said. In a statement, White House said the U.S. had agreed not to increase tariffs on Chinese goods to 25% on Jan. 1. From a report: The truce between the U.S. and China emerged after a highly anticipated dinner Saturday between Trump and Xi on the sidelines of the Group of 20 summit in Argentina. The leaders agreed to stop the introduction of new tariffs and intensify their trade talks, Chinese Foreign Minister Wang Yi told reporters hours later in Buenos Aires. The White House called the meeting "highly successful," saying the U.S. will leave existing tariffs on $200 billion of Chinese goods at 10 percent and refrain from raising that rate to 25 percent as planned on Jan. 1. In exchange, the U.S. wants an immediate start to talks on Trump's biggest complaints about Chinese trade practices: intellectual property theft, non-tariff barriers and cyber theft. After 90 days, if there's no progress on structural reform, the U.S. will raise those tariffs to 25 percent, White House Press Secretary Sarah Huckabee Sanders said in a statement. China also agreed to boost its purchases of agricultural and industrial goods to reduce its trade imbalance with the U.S., she said.
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Trump Agrees Not To Raise Tariff Levels on Chinese Goods; China Agrees To US Purchases. Two Sides To Start Broader Negotiations.

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  • If I were the Chinese, I would stall the process as long as possible. Trump may not make it to the next election and even if he does he may not win. The Chinese leadership is not responsible to the people of China which means they can do things that would get a president impeached or voted out. The Chinese are playing the long game and the USA is playing the short game. I am routing for the USA but it seems to me they may have already lost. I sure hope I'm wrong.

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      Chinese blinked. Trump got exactly what he wanted out of the tariff war. Trumps bellicose statements forced both Canada and Mexico to update the NAFTA trade pact. He didn't get everything he wanted but the US did get a better deal. One of the least talked about pieces of the agreement was requiring any Mexican worker involved in the manufacture automotive related products exported to the US have to earn a minimum of $15 per hour. The is not only good for the Mexican workers but it also removes the number on

      • I like the Mexico 15$ minimum wage but for the rest I'm not sure.

        1) The US trade deficit with China is still on a solid increase.
        https://www.census.gov/foreign... [census.gov]

        2) On Nafta, all I remember is GM closing shop when it might have been put off and US manufactures paying more for steel.

        And Trump may talk like China's policies are unjust to the US, but in his personal life he calls that kind of behavior a good business sense.

  • by bogaboga ( 793279 ) on Saturday December 01, 2018 @10:03PM (#57734496)

    The White House called the meeting "highly successful," saying the U.S. will leave existing tariffs on $200 billion of Chinese goods at 10 percent and refrain from raising that rate to 25 percent as planned on Jan. 1. In exchange, the U.S. wants an immediate start to talks on Trump's biggest complaints about Chinese trade practices: intellectual property theft, non-tariff barriers and cyber theft. After 90 days, if there's no progress on structural reform, the U.S. will raise those tariffs to 25 percent, White House Press Secretary Sarah Huckabee Sanders said in a statement. China also agreed to boost its purchases of agricultural and industrial goods to reduce its trade imbalance with the U.S., she said.

    And with this news, the Democrats will water down this achievement while fuming in their "war rooms" at the same time.

    That, I can guarantee.

    • by meglon ( 1001833 )
      Once again, the problem with all of this is you and the rest of Trumps dick sucking team are complete fucking idiots.
    • they got us to back down on tariffs. OTOH Trump probably couldn't have done those tariffs anyway. Not without wrecking the economy.

      Meanwhile the outsourcing continues, with GM moving 14,000 jobs to Mexico (and rather cleverly blaming it on declining demand for cars vs SUVs while ignoring the new SUV & Truck factories in Mexico).

      Nothing change. Everything continues apace. Well, except we borrowed another $1 trillion as a giveaway to Trump's wealthy friends in the top 1%.
      • they got us to back down on tariffs.M

        You really don't understand what is going on, do you?

        There were never going to be tariffs that high. Trump laid them out as a gamut knowing China had a weaker position then the U,S. if those tariffs were actually implemented. So just as Trump knew would happen, China backed down and is now roughly doing what we want.

        This the part of the world Trump knows cold, he knows how to work positive and negative sides of a deal to make the other party do what he wants. That has

        • Re: (Score:3, Insightful)

          China backed down from what? All they committed to was pausing their retaliatory tariffs.

          • by LynnwoodRooster ( 966895 ) on Sunday December 02, 2018 @11:18AM (#57736492) Journal
            China agrees to buy more US agriculture products [agri-pulse.com]. China agrees to make Fentanyl a controlled substance [cnn.com]. China agrees to negotiate on forced technology transfer [bbc.com]. Yeah, China won on everything, for just a 90 day stay, didn't they?
            • by Actually, I do RTFA ( 1058596 ) on Sunday December 02, 2018 @12:40PM (#57736850)

              China agrees to buy more US agriculture products.

              Right, but they bought less US agricultural products in response to the tariff. So, we're back to zero on agriculture as opposed to being in the negative.

              China agrees to make Fentanyl a controlled substance.

              Fentanyl was already a controlled substance. in China. In fact, it's just straight up illegal in China. It's legal in the US with a prescription. So they agreed to... not change their laws?

              China agrees to negotiate on forced technology transfer.

              Ooh, they agreed to discuss things. I mean, yes that's progress. But they did the same discuss the exact same issue under Clinton, W. and Obama. It's what comes out of those talks that matters. And so far we've seen nothing (from any president from Clinton on).

              Yeah, China won on everything, for just a 90 day stay, didn't they?

              Yeah. So far China's given up nothing other than holding off on their retaliation to our tariffs. In return, they made Trump blink. I'd call that winning.

      • Re:We got talks (Score:4, Informative)

        by LynnwoodRooster ( 966895 ) on Sunday December 02, 2018 @11:13AM (#57736476) Journal

        they got us to back down on tariffs.

        Nope. The 10% in place stays in place. China agreed (finally) to talk about IP theft, trade balance, and drug controls. And for that they get a 90 day stay against an INCREASE from 10% to 25%.

        OTOH Trump probably couldn't have done those tariffs anyway. Not without wrecking the economy.

        No sign that the tariffs in place since September have done much to the economy or country, so what makes you think you'd have bigger impacts from the additional tariffs on $200 billion in trade? We're talking about tariffs going from $20 billion to $50 billion.

        Meanwhile the outsourcing continues, with GM moving 14,000 jobs to Mexico (and rather cleverly blaming it on declining demand for cars vs SUVs while ignoring the new SUV & Truck factories in Mexico).

        Yep! And thanks to the President, when GM does move those jobs, they have to pay at least $16/hour for the labor in Mexico [vox.com], meaning there is a LOT less incentive to move the jobs in the first place - and it will rapidly build up the Mexican economy too.

        Nothing change. Everything continues apace. Well, except we borrowed another $1 trillion as a giveaway to Trump's wealthy friends in the top 1%.

        Yeah, he's got another $9 trillion to go before he equals his predecessor, who also gave away 17% of the economy to his friends in Big Pharma and Big Healthcare...

    • Those aren't war rooms, they're Starbucks.

    • by Ichijo ( 607641 )

      What was achieved is that China has learned the value of a country throwing its economic weight around, just as Russia learned the value of nuclear weapons in 1945.

      Are these really the lessons we want to be teaching the rest of the world?

  • Fucking idiot (Score:2, Insightful)

    by WindBourne ( 631190 )
    He was doing good with tariff increase on china, and should have brought it up to same level as china 's highest tariff on western goods. At least, should have limited to 45 or 60 days, not end of march.
    • by AmiMoJo ( 196126 )

      A lot of US companies were being threatened by those tariffs. 25% on the components they need to do manufacturing in the US. 25% on goods they get OEM'd from China.

      Sure Apple could withstand it, but plenty of companies operate on smaller margins than that.

  • by WindBourne ( 631190 ) on Saturday December 01, 2018 @10:34PM (#57734634) Journal
    Seriously, time for him to rig taxes like other nations. Cut the corp tax, for in-nation items. If done outside, or selling imported goods, then tax at 25%.
    • I would love to see the following:

      A 0% corporate income tax on any company domiciled in the US.To be domiciled in the US, you must meet the following criteria:

      1. Your headquarters must be located within the 50 States

      2. Your primary financial institutions and auditors must be domiciled within the 50 States

      3. At least 60% of your VP-or-higher executives must live at least 200 days a year within the 50 States

      4. At least 67% of your board of directors must live at least 200 days a year within the 50 St

      • We need to bring back the work as well. That is why I suggested 40% of manufacturing, or sold product, be American. Than raise it yearly until hitting 80%. But I agree with rest of yours.
  • Does that mean I can continue to get cheap shit from Banggood?
  • I'm not supposed to tell you guys this but...
    They agreed to throw in the lead paint coating for free on all their toys. Lead is expensive. It's a really good deal.
  • There are so many unfair trade practices that China is involved in, and the U.S. has been begrudgingly accepting of them for years. If you're a business owner, how could you possibly plan for anything if Trump changes his mide ever 4 weeks.
  • by Martin S. ( 98249 ) on Sunday December 02, 2018 @06:22AM (#57735688) Journal

    How much more evidence is required to conclude Trump is not the brilliant 'deal' strategist he thinks he is. He's failed with North Korea, his attempt to sabotage NAFTA also failed, he failed to intimidate the EU and now he's failed to get a better deal from China, which despite his bluster is pretty much the status quo with tweeks that regular diplomats could achieve in a heartbeat without any drama.

    • by guruevi ( 827432 )

      I'm not sure if you missed something watching only-CNN but on all those fronts the US is doing pretty well. NK has backed down, the EU has backed down and is even agreeing to the UK exit and now China is backing down.

      China and NK know very well that their military strength is still nothing compared to the US, we could bring one or two carrier strike groups and literally disable the entire Chinese navy (1 severely technologically deficient aircraft carrier in the entire country), the US doesn't even have to

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