President Donald Trump suggested Tuesday that his 90-day deadline for completing trade talks with his Chinese counterpart Xi Jinping could be extended - while also threatening to ratchet up tariffs if he isn't happy. "China has agreed to start purchasing agricultural product from our farmers immediately". The White House, President Donald Trump, and China are giving slightly different accounts of what was agreed upon. "It will always be the best way to max out our economic power", he said on Tuesday. The existing tariffs are already doing damage, the US Federal Reserve's rate rises and greatly-reduced purchases of US bonds and mortgages are draining stimulus from the economy and the impact of Trump's tax cuts is waning even as the legacy of those cuts and Trump's big surge in spending is showing up in swollen government debt and deficits. "MAKE AMERICA RICH AGAIN", he continued.
During the talks in Buenos Aires, Trump agreed to delay a scheduled escalation in USA tariffs on many Chinese goods, from 10 percent to 25 percent, that had been set to take effect January 1.
The two leaders said they would hold off on imposing additional tariffs for 90 days starting December 1 while they seek a solution to their trade disputes.
The US expects China to take immediate action to cut tariffs on US auto imports and end intellectual property theft and forced technology transfers as the two countries move toward a broader trade deal, Kudlow, director of the White House National Economic Council, said Monday.
Investors were ebullient Monday on word that the USA and China have agreed to suspend their trade war. "Bob Lighthizer will be working closely with Steve Mnuchin, Larry Kudlow, Wilbur Ross and Peter Navarro. on seeing whether or not a REAL deal with China is actually possible", Trump wrote in part of a four-tweet message.
Trump said in a tweet late Sunday that China would "reduce and remove" tariffs on American-made vehicles, raising more questions about the outcome of his meeting with Xi.
But Kudlow said the ultimate amount will depend on market prices and the health of China's economy.More news: Kareem Hunt will be interviewed on Sunday morning
Beijing's decision to keep things vague, for now, may reflect a desire to avoid being seen as having capitulated under pressure - the sides have 90 days to reach a deal - or may be a hedge against Trump's unpredictability, analysts said.
Mr Trump has long accused China of unfair trade practices that hurt USA citizens and the economy.
The uncertainty underscored the risk entailed by Trump's eagerness to strike deals without nailing down details in advance.
Around the same time, Donald Trump announced slapping 25 percent tariffs on $50 billion worth of imported Chinese goods, and Beijing responded in kind, boycotting purchases of U.S. agricultural produce, among others.
A statement from the White House said: "If at the end of this period of time, the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent".
Trump and White House aides have promoted the apparent U.S. President Trump's economically illiterate trade commentary won't help - and is driving American allies to ramp up their own trade barriers to retaliate. "But as he found out with Mexico, Canada and now China, trade is more than the sum of goods and services exchanged between nations".