Following a weekend meeting between President Trump and China’s Xi Jinping at the G20 Summit in Buenos Aires, the U.S. and China announced a 90-day cease fire in the bi-lateral Trade War kicked off this summer.
The cease fire comes at a welcome time as many U.S. importers faced an increase from 10 percent tariffs imposed on $200 billion of goods in September, to 25 percent on January 1. To date, the Trump Administration has applied increased tariffs on $250 billion worth of Chinese products, while China has applied tariffs to $110 billion of U.S. products. Tariffs already imposed will remain in place throughout the 90-day period.
In the event that the two countries are unable to resolve key differences over intellectual property protection, cyber intrusion and theft, and services and trade imbalances, the U.S. is expected to move forward with the additional tariff increases.