CRU: Ceasefire - Trump and Xi Postpone US China Trade War

LONDON, Dec 7, 2018 /PRNewswire/ --

The meeting between Xi and Trump on 1st December turned out to be better than expected. According to the White House press release and Chinese official reports, tariffs will not rise from their current levels over the next 90 days.

Both sides agreed to enter immediate negotiations on 'structural issues'– in other words trade practices. We interpret this as a ceasefire between Trump and Xi, which in our view has the potential to pave the way for a more optimistic trade agreement between the US and China.

Tariffs on hold at 10%

President Trump has agreed not to escalate tariffs further. This means not raising the tariffs on $200 billion of Chinese exports from 10% to 25% on 1st January, as originally scheduled. In return, China agreed to make "very substantial" purchases of US goods, including agriculture (most likely including soybeans) and energy. The US said there would be talks on structural reform covering five areas – forced technology transfer, intellectual property (IP) protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture – are set to start immediately. If there is no progress after 90 days, the US will implement the planned tariff hike.

We expect more market opening by China

Chinese policymakers now face the difficult task of ironing out a deal that is acceptable to the Chinese people but also involves significant enough concessions not to be toppled by the China hawks in the Trump administration.

Read the full story: https://www.crugroup.com/knowledge-and-insights/insights/2018/ceasefire-trump-and-xi-postpone-us-china-trade-war/ 

Read more about CRU: http://bit.ly/About_CRU

About CRU

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 260 experts and has more than 10 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU – big enough to deliver a high-quality service, small enough to care about all of our customers.

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