Asian shares fall, dollar slips after US-China tariffs truce

Asian shares fall, dollar slips after US-China tariffs truce

Asian shares fall, dollar slips after US-China tariffs truce

The United States said Monday it will need to see "something concrete" from China in the next 90 days to build a real agreement on trade, two days after Donald Trump and Xi Jinping called a truce in the escalating confrontation between the two powerhouses.

Trump agreed to postpone the raising of tariffs on goods from China worth United States $200 billion from 10 percent to 25 percent, which had been scheduled for January 1.

The meeting was the first face-to-face encounter between the leaders in more than a year, a period that saw the Trump administration impose tariffs on billions of dollars in Chinese imports in a bid to force Beijing to halt trade practices the USA considers unfair. Existing tariffs, however, will stay in place. The deadly synthetic opioid is responsible for tens of thousands of USA drug deaths annually.

The truce between the USA and China emerged after a highly anticipated dinner December 1 involving Messrs. "Xi avoids further immediate pressure on China's slowing economy, while Trump â€" hit by the US Democrats' congressional win in last month's mid-term elections â€" can ease damage to agricultural US states that export to China.

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Beijing and Washington now have 90 days to make progress in talks over the main issues, which include U.S. complaints that China forces American companies to hand over technology and steals their intellectual property through hacking. Other issues include "structural changes with respect to forced technology transfer, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture".

According to the US President, his relationship with Xi is "very special".

In a series of tweets Monday, the president said his meeting with President Xi Jinping was an extraordinary one. The Office of the US Trade Representative did not immediately return a request for comment, neither did representatives for China's commerce ministry.

USA markets initially gained more than 1% on Monday, but the enthusiasm dimmed a bit later, as it remained unclear how the two countries will resolve their underlying differences. Trump and the leaders of those countries signed an updated trade deal, the U.S. -Mexico-Canada Agreement, or USMCA, at the G-20.

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Despite the agreement between Trump and Xi to put the trade war on hold, reaching a detailed deal to address all the key differences on trade related issues would be a daunting task for negotiators from both countries, political analysts warned.

President Trump added: "This was an wonderful and productive meeting with unlimited possibilities for both the U.S. and China. People have already started to reconsider their sourcing arrangements", said Larry Sloven, who has been sourcing and manufacturing in China for three decades. "Farmers, I LOVE YOU!"

"The good news is that this truce should be seen as Washington recognizing the potential damage on the U.S. economy if tariffs escalate further", said Tai Hui, chief market strategist for Asia Pacific at JPMorgan Asset Management.

Beijing will no doubt attempt to make good on its pledge to increase purchases of US goods, turning probably to soybeans and potentially energy.

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"(China will purchase) agricultural, energy, industrial and other products from the United States to reduce the trade imbalance between the two countries", Washington said.

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