Trump and Xi also 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, according to the White House statement. Officials downplayed expectations about reaching a broader trade deal that would end the tariff war.
That's why carmakers and vehicle parts manufacturers on both sides of the Pacific were initially buoyed by the claim of an "incredible" trade deal emerging from the 2-1/2 hour dinner meeting President Donald Trump held with his Chinese counterpart Xi Jinping on Sunday at the G-20 summit. "But if not remember, I am a Tariff Man", the commander-in-chief wrote about the agreement.
One Chinese official said officials were "waiting for the leaders to return" before publicising details.
But Chinese officials haven't confirmed any of their goals in the unwritten agreement, saying only that teams from both sides would follow through with more negotiations.
After describing the agreement made between China and the U.S. during the G-20 summit in Argentina over the weekend as "an incredible deal" and "one of the largest deals ever made", Donald Trump has done an unsurprising 180 after apparently finally appearing to catch up with reality.
The Dow Jones Industrial Average fell by about 799 points or 3.09 percent on Tuesday after Trump reminded China that he was "a Tariff Man" who could easily hike tariffs on Chinese goods if they failed to deliver on their promise to purchase American goods.
Amid the renewed tensions over tariffs, Mr. Trump held an unusual meeting at the White House with Germany's three largest automakers - Volkswagen, Daimler and BMW - seeking increased investment in their USA facilities. He said it could include VW using unused Ford capacity to build cars.
Daimler President Dieter Zetsche said the U.S.
Adding to skepticism of the deal were reports that Trump has chosen trade hawk Robert Lighthizer to head negotiations with Beijing. We are right now taking in $billions in Tariffs.More news: Twitter Outraged Over Article Labelling Priyanka Chopra 'Global Scam Artist'
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All three companies present - BMW, Daimler and Volkswagen - already produce cars in the United States. "Not with national governments".
Shares of U.S. and overseas auto companies rose on the announce-ment, though it's unclear how much companies like GM or Ford will actually benefit.
Furthermore, Kudlow seemed to downplay Trump's assertion following the meeting that China agreed to reduce or eliminate its tariffs on American automobiles, telling reporters that there was no "specific" agreement reached.
Officials from the US and a number of other major economies have often criticized China for its slow approach to negotiations and not following through on commitments. But when Trump announced broad new US tariffs on Chinese made goods, the Beijing government raised duties specifically on American made automobiles and parts.
The tariff tactic stoked fierce opposition among free trade advocates in the Republican Party.
The Chinese tariff had been 25 percent and, earlier this year, the country was set to roll the tax back to just 15 percent.
The U.S. agreed to delay raising tariffs on China for 90 days so that the two sides would have more time to negotiate. "China does not want Tariffs!"
Perhaps, but the auto industry, in particular, has been hard hit by both the Chinese trade war and tariffs on imported aluminum and steel.
"The market is trying to figure out, is there going to be a real deal at the end of 90 days or not", Mnuchin said at a Wall Street Journal event on Tuesday. "Ultimately, I believe, we will be making a deal - either now or into the future", Trump wrote in a post within minutes of the Commerce Ministry statement.