US President Donald Trump and Chinese leader Xi Jinping have agreed to restart trade talks. The US also confirmed it would not slap additional tariffs on Chinese exports for now.
Image: Reuters/K. Lamarque
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Chinese President Xi Jinping and US President Donald Trump on Saturday agreed to resume trade talks, following a high-stakes meeting on the sidelines of the G20 summit in the Japanese city of Osaka.
Trump said his meeting with Xi was "excellent" and that "we're right back on track," adding that the US was "going to work with China where we left off."
Washington has agreed not to slap new tariffs on Chinese exports "for at least the time being," while China will buy more US agricultural products, Trump confirmed at a news conference, corroborating earlier reports from China.
The planned levies on an additional $300 billion (€263 billion) worth of Chinese goods would have effectively extended tariffs to everything China exports to the US.
In a Foreign Ministry statement following the lengthy talks, Xi told Trump he hoped the US could treat Chinese companies fairly.
"China is sincere about continuing negotiations with the United States ... but negotiations should be equal and show mutual respect," the Foreign Ministry quoted Xi as saying.
The US president has already heaped taxes on $200 billion (€176 billion) of Chinese imports. Beijing has retaliated by slapping its own tariffs on imports from the US.
US President Donald Trump has repeatedly boasted that the tariffs he has imposed on trading partners are a financial windfall but, research shows it is Americans who bear the brunt of the impact. DW has an overview.
Image: picture-alliance/newscom/B. Greenblatt
Solar panels and washing machines
The first round of tariffs in 2018 were on all imported washing machines and solar panels — not just those from China. A study by economists from the Federal Reserve Bank of
New York, Columbia University, and Princeton University found that the burden of Trump's tariffs — including taxes on steel, aluminum, solar panels falls entirely on US consumers and businesses who buy imported products.
On Friday May 10, 2019 President Donald Trump imposed sanctions on $200 billion (€178 billion) worth of Chinese goods. The move raised tariffs from 10% to 25% on a range of consumer products, including cell phones, computers and toys. China's Commerce Ministry said it "deeply regrets" the US decision.
Image: Getty Images/AFP/STR
Issues with the EU
In April 2019, the United States said it wanted to put tariffs on $11.2 billion worth of goods from the EU. The list includes helicopters and aircraft from Airbus as well as European exports like famous cheeses such as Stilton, Roquefort and Gouda, wines and oysters, ceramics, knives and pajamas.
Image: Imago/Ralph Peters
EU fights back
The EU imposed import duties of 25% on a $2.8 billion range of imports from the United States in retaliation for US tariffs on European steel and aluminum. Targeted US products include Harley-Davidson motorcycles, bourbon, peanuts, blue jeans, steel and aluminum.
Image: Getty Images/AFP/M. Ralston
European automakers next?
May 17, 2019 is the deadline for President Trump to decide on imposing tariffs on vehicle imports from the EU. According to diplomats, Germany, whose exports of cars and parts to the United States are more than half the EU total, wants to press ahead with talks to ward off tariffs on automakers Volkswagen, Mercedes and BMW.
Image: picture alliance/dpa
India not exempt
India, the world's biggest buyer of US almonds, on June 21, 2018 raised import duties on the nuts by 20% and increased tariffs on a range of other farm products and US iron and steel, in retaliation for US tariffs on Indian steel. Trump said last month that he would end preferential trade treatment for India, which would result in US tariffs on up to $5.6 billion of imports from India.
Image: Getty Images/AFP/R. Schmidt
North American neighbors in tariff spat
Mexico on June 5, 2018 imposed tariffs of up to 25% on American steel, pork, cheese, apples, potatoes and bourbon, in retaliation for US tariffs on Mexican metals. While to the north, Canada on July 1 imposed tariffs on $12.6 billion worth of U.S. goods, including steel, aluminum, coffee, ketchup and bourbon whiskey in retaliation for US tariffs on Canadian steel and aluminum.
Image: Reuters/E. Garrido
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Trump and Xi to discuss Huawei
The dispute has already disrupted global supply chains and markets. Talks between US and Chinese officials over the tit-for-tat measures collapsed last month after 11 rounds of negotiations.
The trade dispute between China and the US includes a feud over Chinese technology firm Huawei, with Beijing fearing it could threaten the company's global growth.
The Trump administration has declared Huawei a security threat, effectively banning US companies from doing business with it.
The US has encouraged its allies to shun the firm in their 5G networks on security grounds, and has also suggested it could be a factor in a trade deal.
Trump said on Saturday that he had discussed Huawei with Xi and that resolving the issue would come later. US companies would still be able to sell components to Huawei, he added.
