Ceasefire on U.S.-China trade war boosts markets

The U.S. and China have agreed to a 90-day ceasefire, but the deal to hold tariffs at current levels fails to tackle simmering trade war tensions.

Glenn Freeman 3 December, 2018 | 6:00PM
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Donald Trump and Chinese President Xi Jinping have agreed to a 90-day ceasefire in their trade war at the G-20 summit. But the deal to hold tariffs at current levels fails to address longer-term tensions and may simply prove a pause in escalating tariffs.

At Saturday’s dinner U.S. President Trump and his Chinese counterpart Xi Jinping agreed to a 90-day truce in the trade war that has rattled the world’s two superpowers and sent shockwaves across global markets.

The US has agreed to leave existing tariffs on $200 billion of Chinese goods at 10% and refrain from raising that rate to 25% on 1 January as previously threatened. China agreed to boost purchases of farm and industrial goods to reduce the trade imbalance.

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Glenn Freeman

Glenn Freeman  Glenn Freeman is a senior editor for Morningstar.com.au.

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