The U.S. and China have reached a truce of sorts to the ongoing trade war.
At the Group of 20 summit in Argentina this weekend, U.S. President Donald Trump and Chinese President Xi Jinping came to an agreement over a two-and-a-half-hour dinner to halt the U.S.'s planned 25 percent tariff on $200 billion worth of imported Chinese goods for the next 90 days so trade talks can continue. In return, China has pledged to buy more American products, though it was not specified how much or which products.
Both countries have imposed tariffs on the other's imported products. In the U.S., the Trump administration enacted a 10 percent tariff on $250 billion worth of imported Chinese goods last September. China has also implemented tariffs on $110 billion worth of U.S. imports. These tariffs will remain in effect as trade talks continue.
Reactions to this news are still rolling in, but some have already expressed relief and positivity.
“We commend President Trump for his efforts to restore a fair and balanced trade relationship with China," said the National Retail Federation's President and CEO Matthew Shay in a prepared statement. "The administration’s decision to give diplomacy a chance and at least temporarily avoid the imposition of increased and additional tariffs is an encouraging sign. It is clear the administration has heard the voices of those negatively impacted by existing tariffs. We hope this 90-day tariff pause will lead to a positive resolution that removes tariffs altogether and improves U.S.-China trade relations. Retailers are pleased by this progress.”
Check back here later this week for ongoing coverage of tariffs.