Economy
December 4, 2018
Ceasefire: Trump and Xi Postpone U.S./China Trade War
Written by Tim Triplett
By the CRU Group Economics Team
The meeting between Chinese President Xi Jinping and President Trump on Dec. 1 turned out to be better than expected. According to the White House press release and Chinese official reports, tariffs will not rise from their current levels over the next 90 days. Both sides agreed to enter immediate negotiations on “structural issues”—in other words, trade practices. We interpret this as a ceasefire between Trump and Xi, which in our view has the potential to pave the way for a more optimistic trade agreement between the U.S. and China.
