China to 'immediately' implement US trade truce measures

The U.S. losses followed declining markets in Asia, where the Nikkei closed off almost two percent, with European indexes dropping almost three percent in afternoon trading.

John Williams, president of the Federal Reserve Bank of NY, also unnerved investors by telling reporters Tuesday that he supports further Fed rate hikes. China has responded with its own tariffs.

Trump and White House aides have promoted the apparent U.S. "And actually, I don't know the answer to that".

"The negotiations with China have already started. ALL subjects discussed!" the USA leader wrote a few hours before he will be face-to-face with all other living presidents for the first time since he was sworn into office in January 2017.

The important meeting between Xi and Trump happened in a critical time, Zhang added. "I am a Tariff Man".

The mood has quickly soured, however, on skepticism that the two sides can reach a substantive deal on a host of highly divisive issues within the 90-day negotiating period.

Trump's series of tweets also show he has no problems with re-igniting the trade war if a broader agreement on his terms isn't reached in the next 90 days.

Questions began to swirl after China's foreign minister read a statement Saturday in Buenos Aires that said Washington agreed to halt tariff hikes. "Narrow agreements and modest concessions in their ongoing trade dispute will not bridge the wide gulf in their respective economic, political and strategic interests". However, it was unclear if this meant China would scrap the retaliatory tariffs on these items-currently at 25 percent for soybeans, and 10 percent for LNG.

Trump, however, has threatened to slap tariffs on auto imports from Europe and other countries, citing US trade deficits with those nations. But Mnuchin added, "If that's real" - thereby raising some doubt - it would close the USA trade deficit with China, and "We have to have a negotiated agreement and have this on paper".

"The actual amount of concrete progress made at this meeting appears to have been quite limited", Alec Phillips and other economists at Goldman Sachs wrote in a research note.

Failure would raise the specter of a major escalation in the trade battle, with fresh U.S. tariff action and Chinese retaliation possibly as early as March.

As the two countries work to resolve their differences, some Chinese analysts expect China to cut agricultural tariffs as a sign on commitment to the trade truce.

"China will start from implementing specific issues on which consensus has been reached, and the sooner, the better", Beijing's ministry of commerce said on its website.

The two sides will also negotiate "structural changes" to forced technology transfer, intellectual property protection, cyber intrusions and cyber theft, services and agriculture, according to the White House.

Chief economic adviser Larry Kudlow acknowledged those challenges in remarks Tuesday morning.

For its part, China has said it will import more United States products to reduce its trade surplus, but no dollar amount has been publicly discussed. "Am I getting that right?"

"It will proceed as planned, step by step, not based on the rhythm of the United States".

While Asian equities dropped yesterday in the wake of the biggest slide in stocks on Wall Street since the mid-October downdraft, United States futures advanced after the statement from China echoed Trump's optimism over trade talks.

"What's great about this is that they wouldn't be coming to the table here to talk to us unless the president had auto tariffs on the table", Navarro told Fox Business Network about the Germans.

Vanessa Coleman

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