In an effort to reach an accordance on the larger issues, the Trump Administration has announced that it is holding off on the imposition of new 25 percent tariff on a range of Chinese imports.
In return, Chinese trade officials vowed to purchase between $40 and $50 billion in U.S. farm goods.
Despite the lull in what has been increasingly confrontational trade negotiations between the two countries, the U.S. remains committed to imposing a scheduled December 15 tariff hike on some $160 billion in smart phones and other imports.
The truce, reports the New York Times, “will help calm a trade fight that has taken a significant toll on the world’s two largest economies and threatened to further slow global growth at a precarious moment.”
The Chinese People’s Daily, which is the official paper of the Communist Party in that country, cautiously noted that “the final outcome will depend on whether the U.S. can walk together with China, and create the necessary and sufficient conditions to push ahead.”
Treasury Secretary Steven Mnuchin has additionally reported that both U.S. and Chinese negotiators have reached an “almost complete” agreement on financial services and currency issues.
In a press conference, Mnuchin said the U.S. was additionally considering withdrawing an official charge accusing China of currency manipulation, noting: “We’ll be making a decision about that, evaluating that.”
China is the world’s number one construction market with the U.S., with more than $968 billion in construction goods traded between the two countries.
By Garry Boulard
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