If the two sides can not reach agreement over these matters within the next 90 days, the United States will raise tariffs. "The existing tariffs are still having a negative impact on the Chinese economy, they haven't gone away". The US spent 716 Billion Dollars this year.
What happens if there's no deal after 90 days?
Trump and Chinese President Xi Jinping agreed to halt new tariffs during talks in Argentina on Saturday, following months of escalating tensions on trade and other issues. These tariffs also will not be implemented before March 1, 2019.
The lack of specificity is not limited to the promise that China will purchase more agricultural goods.
Any move to reduce or eliminate the extra tariff is a boon for carmakers such as Tesla, BMW and Daimler, which all produce cars in the United States and import to China. Whilst Jinping has agreed that Beijing will buy an unspecified, but "very substantial" amount of agricultural, energy, and industrial products from the U.S. market, to reduce the trade imbalance between the two nations.
"As far as we can tell, there are big discrepancies between both sides' statements", he said in a research note.
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"China will still need to prepare for the worst scenario of a "decoupling" of the Chinese and American economies, in particular in the high-tech sector", Wang Yong, the director of the Center for International Political Economy at Peking University, said, adding that Beijing faced an increasingly hawkish Trump administration.
President Trump and President Xi have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture. "China has agreed to start purchasing agricultural product from our farmers immediately".
"We all realize that we are indirectly influenced by the fact that Sino-American economic relations are not running as smoothly as a world order needs", she said.
Treasury Secretary Steven Mnuchin said on CNBC the United States and Chinese had "very specific discussions" in Buenos Aires Saturday evening on steps to defuse their conflict, which involves hundreds of billions in bilateral trade and had roiled world markets for months.
The move allows talks to take place between the two sides.
Nevertheless, businesses should continue to brace themselves for heightened tariffs. "The resumption of talks between the U.S. and China is encouraging for our industry, as we are dependent on complex global supply chains for our marketplaces around the world". We can't yet determine whether both parties will be able to reach an economic trade deal within the 90-day period, as its unclear how much China is willing to sacrifice towards this deal.
Trump's aggressive trade actions left in their wake a farm industry suffering from China's retaliation, hitting soybeans especially hard, and a business sector fraught with uncertainty, facing higher costs and holding off on investment.