Doubts on the rise about the US-China ceasefire

Doubts on the rise about the US-China ceasefire

It also said China had agreed to start buying farm products from U.S. farmers immediately.

Financial markets surged on the news of the ceasefire, with the benchmark Dow Jones Industrial Average up 1.2 per cent, more than 300 points, about 30 minutes after the open, relieved that some of the immediate threat of further damage was averted.

China offered more than $1.2 trillion in additional commitments on trade at the Xi-Trump dinner, Treasury Secretary Steve Mnuchin said on Monday.

Already there was confusion over when the 90-day period would start.

Following the Trump-Xi talks, which took place over dinner at the end of the G20 summit, Washington agreed to hold off on Trump's threat to slap 25 per cent tariffs on United States dollars 200 billion worth of Chinese goods from January 1, leaving them at the current 10 per cent rate.

"When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so", he said. Let the negotiations begin.

Washington and Beijing said they will try to achieve a permanent deal within the next 90 days, however the USA still has significant leverage, stating that if a formal deal can't be reached then it will hike tariffs from 10 percent to 25 percent, which could roil global stock markets, stagnate global economic growth, dampen oil demand growth and possibly lead to a recession across the globe, particularly in emerging economies. "Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina", Trump tweeted. In his Twitter posts on Tuesday, Trump said they might need an extension if the 90-day timeline didn't prove sufficient.

A lack of detail from the Chinese side has left investors and analysts wondering if Trump's exuberance is premature, and if details touted by the White House but left out of Chinese reporting on the agreement are in question.

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Furthermore, he said he would be interested in inviting Kim to the USA for talks at "some point" in the future. The president tells reporters that there are three sites under consideration, but he's not identifying them.

China also agreed to lift tariffs, including reducing its 40-percent tariff on American cars, . which Mnuchin expects will eventually "fall to zero".

Neither the Chinese government nor official state media has made any mention of the 90-day time limit to reaching a consensus on trade, just one of several areas in which both countries' accounts of the terms agreed during the leaders' summit have varied.

"But if not remember, I am a Tariff Man", the commander-in-chief wrote about the agreement.

The tweet comes after the US and China emphasized different results from Sunday's high-stakes meeting between Trump and Xi.

China responded to earlier United States tariffs with retaliatory levies of its own, targeting $110 billion worth of United States products, including soybeans and other agricultural products.

"But if a fair deal is able to be made with China, one that does all of the many things we know must be finally done, I will happily sign", Trump said.

Still, "the market is very concerned about the outcome of further negotiations", and whether there will be big purchases in the next few weeks, she said.

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