'Nothing burger': US-China trade truce kicks can down the road

China's exports dropped 3.2% in September while imports dived 8.5% new figures show today

China's exports dropped 3.2% in September while imports dived 8.5% new figures show today

"China's manufacturing sector and supply chains were struggling amid US-China trade wars and they can avoid catastrophe for the moment".

U.S. President Donald Trump agreed Friday to put off an additional tariff hike planned for this week on Chinese imports.

But Arthur Kroeber of Gavekal Economics points out that Chinese imports of USA crops peaked at $29 billion a year in 2013 and have since declined to $10 billion annually.

Chinese firms have bought US agricultural products including 20 million tons of soybeans and 700,000 tons of pork so far this year and will accelerate its purchases, Chinese Foreign Ministry Spokesman Geng Shuang told reporters on Tuesday.

"The problem for the U.S.is, if this is where it lands, are we really going to have substantial tariffs on China indefinitely?" said Sheets, now chief economist for asset manager PGIM Fixed Income.

The two sides are working toward a deal that can be signed at the Asia-Pacific Economic Cooperation summit next month in Chile.

Though President Trump had agreed not to proceed with a hike in tariffs set for today, US Trade Representative Robert Lighthizer said Trump had not made a decision about tariffs that were subject to go into effect in December.

While the Trump administration has touted the deal as a win for the U.S., Bartiromo and other analysts are skeptical.

"We have a fundamental agreement that is subject to documentation", Mnuchin told CNBC's "Squawk Box."

"From the very beginning of the trade war, farmers have been promised that their patience would be rewarded", Brian Kuehl, co-executive director of Farmers for Free Trade, said in a statement.

On 12 October, President Donald Trump signalled that the United States and China have finally found common ground on at least some issues and may soon strike a new comprehensive trade deal. "The only thing that happened Friday was that the United States delayed the tariff increase". "If that's the case, we should expect more bumps in the road in the lead up to a mid-November meeting between Trump and Xi".

And the president said the Chinese agreed to buy $40bn to $50bn in U.S. farm products.

Trump emphasised the agricultural purchases he says China has supported.

US farm sales to China have never exceeded $26bn a year, according to the US Department of Agriculture.

President Donald Trump, who described the talks as a "love fest", said the preliminary deal would take about five weeks to complete.

Trade hostilities are weighing on the U.S. and world economies.

Finally, Friday's deal doesn't end the trade conflict between the US and China so much as call a truce. It has encouraged local governments to issue more bonds to fund infrastructure construction. The Trump administration still has in place tariffs on more than $360 billion worth of Chinese imports, while Beijing has lashed back by taxing about $120 billion in USA goods.

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