Published: Fri, December 14, 2018
Money | By Arnold Ball

US and China Reach 90-Day Cease-Fire in Trade Dispute

US and China Reach 90-Day Cease-Fire in Trade Dispute

And Beijing agreed to reconsider a takeover by USA chipmaker Qualcomm that it had previously blocked.

The tariff reduction benefits Daimler and BMW more than USA automakers such as General Motors or Ford Motor Co. The arrest had turned out to be another hurdle to the resolution of a Sino-US trade war. The U.S.is now imposing a 10 percent duty on imported aluminum and a 25 percent duty on imported steel.

China has already slapped tariffs on $110 billion in USA goods.

China's government says its economic czar and U.S. Treasury secretary Steven Mnuchin have discussed plans for the next round of talks in a tariff battle following a temporary cease-fire.

China has also told state oil trader China International United Petroleum & Chemical Corp (中國國際石化聯合) to buy U.S. oil, and Washington is expecting Beijing to cut tariffs on US-made automobiles and parts. "And therefore tension between China and USA will continue".

"Now we are seeing the possibility that China will come through with reductions of tariffs on USA autos and that's another good, concrete step".

China is the largest market for United States soybeans, making up over 60% of total exports in 2017.

Less than two weeks after the Trump administration declared a 90 day armistice in the trade war with China, the White House is preparing to condemn China for hacking and IP theft, with the Department of Justice readying indictments against several Chinese hackers.

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During Tuesday's televised meeting between the president and the top Democrats , CNN analyst Ana Navarro tweeted: "Oh my God". Looking on is Vice President Mike Pence in the Oval Office on December 11, 2018.

Foreign Minister Wang Yi said Tuesday that Beijing will "spare no effort" to protect against "any bullying that infringes the legitimate rights and interests of Chinese citizens".

"I've heard rumors that they're going to buy our beans and put them in reserve, but I don't see ships sitting in our ports to haul them to China yet", said John Heisdorffer, an Iowa soybean grower and chairman of the American Soybean Association, on Wednesday.

Sentiment had got a lift on Tuesday from reports China was considering cutting import tariffs on American-made cars to 15 percent from the current 40 percent.

Growing concerns that the trade war will increasingly hurt corporate earnings and the US economy are a key reason why USA stock prices have been sinking this fall.

In May, after talks in Washington, the U.S. agreed to hold off on tariff threats, while China said it would reduce the import duty on foreign cars from 25% to 15%.

President Donald Trump said he is willing to meet Chinese President Xi Jinping again on trade as he hailed the country for resuming soybean purchases.

German automakers have been getting hit particularly hard from both sides of the worldwide trade war.

BMW, which exports sport utility vehicles from the United States to China, rose as much as 3.3pc to €72.40 in Frankfurt. Soybeans are the single most valuable U.S. agricultural export and China bought 60 percent of those exports a year ago, worth US$12.25 billion.

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