U.S. President Donald Trump predicted Monday “very good things will happen” in a U.S.-China trade spat following a detente he agreed to over the weekend with his Chinese counterpart.
My meeting in Argentina with President Xi of China was an extraordinary one. Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!
— Donald J. Trump (@realDonaldTrump) December 3, 2018
“Relations with China have taken a BIG leap forward!” Trump said on Twitter. “We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!”
Trump and Xi Jinping agreed Saturday to a 90-day halt in their trade war to allow for negotiations on a host of trade issues.
The deal prevents an escalation on U.S. tariffs on $200 billion worth of Chinese goods, keeping the penalty at 10 percent instead of hiking to 25 percent Jan. 1. That would still take effect if the sides cannot agree to a larger trade deal within the three-month window.
Trump said in exchange for the pause, China intends “to start purchasing agricultural product immediately” after saying in a late Sunday night tweet that Beijing “agreed to reduce and remove” a 40 percent tariff on U.S. car imports.
“President Xi and I have a very strong and personal relationship. He and I are the only two people that can bring about massive and very positive change, on trade and far beyond, between our two great Nations,” Trump said Monday.
U.S. markets soared on news of the detente with the Dow rising more than 400 points in Monday morning trading.
The trade war had been a pall on international markets as the world’s two largest economies exchanged rounds of increasingly severe tariffs.