White House Confirms Trump Will Not Raise Tariffs On China From 10% To 25% From Jan 1

MOSCOW/BEIJING (UrduPoint News / Sputnik - 02nd December, 2018) US President Donald Trump has agreed to temporarily postpone the idea of raising the tariffs on $200 billion worth of Chinese products from 10 percent to 25 percent starting from January 1, 2019, in order to pave the way for trade talks, the White House said, thereby confirming related Chinese media reports.

"President Trump has agreed that on January 1, 2019, he will leave the tariffs on $200 billion worth of product at the 10% rate, and not raise it to 25% at this time. China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries," the statement, issued after Trump's talks with Chinese leader Xi Jinping on the G20 sidelines on Saturday, said.

According to the White House, Beijing has agreed to start buying agricultural goods "from our farmers immediately.

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The United States however warned that if the trade talks do not succeed within the next 90 days, the tariffs will be raised to 25 percent as planned.

"President Trump and President Xi have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture. Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%," the statement added.

Meanwhile, the Xinhua news agency also reported earlier in the day, citing the Chinese Foreign Ministry, that the two countries agreed to engage in talks on axing extra tariffs.