The Trump-Xi meeting was the marquee event of Trump's whirlwind two-day trip to Argentina for the G-20 summit after the president canceled a sit-down with Russian President Vladimir Putin over mounting tensions between Russia and Ukraine. Pledging to crack down Fentanyl is considered a low-hanging fruit in the Trump-Xi meeting, as China has previously pledged to work with the United States to stop opioid imports. He said relations have taken a big leap forward, adding, USA farmers will be a very big and very fast beneficiary of the deal after China agreed to purchase more agricultural equipment.
"My relationship is very special, the relationship that I have with President Xi", he said as the two men were seated.
Both countries agreed they will try to have this "transaction" completed within the next 90 days, but if this does not happen then the 10 per cent tariffs will be raised to 25 per cent, it added.
Trump and Xi were set to talk over dinner Saturday at the summit of world leaders in Argentina. Trump agreed to hold off for the time being on any new tariffs, while his Chinese counterpart pledged to purchase more American goods. Both countries will accelerate negotiations with an aim of withdrawing all tariffs that were imposed and both countries would make mutual visits in due course.
Take, for example, what the White House is holding up as a major part of the deal: that China "will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product [s] from the United States to reduce the trade imbalance between our two countries".
Uncertainty also surrounded the details of the broader trade war truce struck by the U.S. and China at the G20 summit. Trump tweeted that China has agreed to "reduce and remove" these, without elaborating on the timeline and conditions.
If no broader deal is reached within 90 days, the USA said it would hike tariffs on $200bn of Chinese goods from 10 to 25 percent. China would also buy agricultural products from U.S. farmers immediately.
In addition to the Dow, futures for the S&P 500 and the Nasdaq have also jumped significantly, with futures on oil and copper posting large increases as well on hopes a China-U.S. trade deal could boost global economic growth. And the threat to slap tariffs on everything China exports to the USA will presumably be back on the table as well.
Discussions were to begin immediately, with the goal of an agreement within 90 days.
"It's an incredible deal", Trump said.
"It was a great and productive Meeting with unlimited possibilities both for the United States, as well as for China", Trump quoted in the message of the White house.
Xi also agreed to designate the drug fentanyl as a controlled substance, the White House said.