A partial deal between the US and China that has been reached at the meeting between President Trump and Chinese Premier Xi Jinping may offer an only temporary reprieve of tariffs. This is because it lacks the specifics and sweeps all the crunch blockage and tricky issues under the carpet, for the time being, to be taken up mater on. This has allowed both the economic superpowers to claim success in deescalating the situation for the time being.
The initial agreement between the US and China included the increased purchase of US farm products. It also featured discussions on intellectual property, currencies and a wide range of financial services. The meeting finally has ended one of the worst trade wars between the two economic superpowers that continued for 18 months.
President Trump, meanwhile, has his reason to be elated. As he has been of late facing an inquiry for impeachment, he was quick to grab this opportunity, and highlight the success of the meeting as a major breakthrough in terms of achievement during his tenure as POTUS.
However, all said and done, it will still take weeks to settle down things and the details are still not clear. And the two countries will not be rolling back the tariff which has already been implemented on the two-way trade, involving transaction of hundreds of billions of dollars.
The world market, however, reacted with caution and skepticism, as earlier attempts of truce between the two heads of states did not provide any fruitful results.
As of now, Washington will be holding off on a mammoth increase of tariff which has been scheduled for the next week. The negotiations, however, are hopeful that the tariffs scheduled for December will be rolled back, as a result of this truce. China, however, still remains tight-lipped about these details as of yet.