China, U.S. agree to a trade truce

China and the United States have agreed to cool their red-hot trade war for 90 days while they try to sort things out.

U.S. President Donald Trump. (Postmedia Network File Photo)

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China and the United States have agreed to cool their red-hot trade war for 90 days while they try to sort things out.

United States President Donald Trump agreed to hold tariffs on about 200 billion worth of Chinese imports at 10 per cent rather than implementing a planned Jan. 1 increase to 25 per cent.

Chinese President Xi Jinping agreed to start buying more agricultural products immediately, but so far there is no list of items.

U.S. farmers would love for China to drop its tariffs on soybeans and pork and, so too, would Canadian farmers whose prices have also suffered from the Chinese tariffs.

The two leaders also agreed to immediately start talks on structural changes with respect to forced technology transfers, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture, the White House said.

Both countries agreed they will try to have this “transaction” completed within the next 90 days, but if this does not happen then the 10 percent tariffs will be raised to 25 percent, it added.

The Chinese government’s top diplomat, State Councillor Wang Yi, said the negotiations were conducted in a “friendly and candid atmosphere”.

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