On the sidelines of annual G20 Summit in Argentina's capital Buenos Aires ,Trump and Chinese President Xi Jinping, on Saturday agreed to suspend any new tariffs for 90-days and take steps to address the trade disputes, which over the past few months had threatened to spill over into a trade war between the world's two largest economies.
"The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina," Trump said in a tweet, days after his meeting with the Chinese President Xi Jinping in Buenos Aires, on the sidelines of the G-20 Summit.
The US Trade Representatives Robert Lighthizer will be working closely with the Treasury Secretary Steven Mnuchin, White House Chief Economic Advisor Larry Kudlow, Commerce Secretary Wilbur Ross and Peter Navarro, director of trade and industrial policy, Trump said.
Lighthizer along with his other top officials will see "whether or not a REAL deal with China is actually possible. If it is, we will get it done," he said.
Referring to his conversation with Xi, Trump said China is supposed to start buying Agricultural product and more immediately.
"President Xi and I want this deal to happen, and it probably will," he said.
However, he threatened to go back to his policy of using tariff as a tool.
After his talks with President Xi, Trump has agreed not to go ahead with his plans to impose import tariffs on USD267 billion of Chinese products. In the last six months, he has imposed tariffs on import of USD250 billion Chinese products.
"But if not remember...I am a Tariff Man," Trump said, referring to his plans of additional tariffs if negotiations does not end up in a trade deal with China that meets his expectations.
"When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in billions in Tariffs. MAKE AMERICA RICH AGAIN, Trump said.
"But if a fair deal is able to be made with China, one that does all of the many things we know must be finally done, I will happily sign. Let the negotiations begin. MAKE AMERICA GREAT AGAIN!" he said.
However, Indian American Congressman Ro Khanna said that Trump's policy on tariff is unlikely to be helpful to the US. Trade deal negotiations with China has started Trump.
"Trump always talks about 'America First', but tariffs won't help America compete with China and lead in the 21st century. We need an inclusive patriotism built on the idea that every community deserves the resources and tools to succeed in our tech-driven economy," Khanna said.
Republican Senator Marco Sanders believes that China is just buying time.
"China is playing for time. They are calculating the combination of a potential 2019 US economic growth slowdown, pressure from Democratic House and looming 2020 election will force the President to back down, he said.
"Then they will agree to changes they are going to make anyways. This isn't just about balance of trade, it's about geopolitical balance of power. Imbalances between great powers leads to dangerous conflict. We are headed towards a geopolitical imbalance increasingly tilted in #China's favour. We must get this right before it is too late, Rubio said.
In a series of tweets, Rubio said Chinese have a long history of playing the US on trade.
"They specialise in delay tactics in which they 'agree' to negotiate but nothing ever changes. I hope G20 meeting is the beginning of a new direction. But I suspect it isn't," he said referring to the decision taken between Xi and Trump in Argentina over the weekend.
"Among agreements China hasn't publicly acknowledged: China will buy 'very substantial' industrial & energy products & 'immediately restart buying US agriculture products, tariffs will be raised by 25 per cent if no deal within 90 days and Qualcomm-NXP deal will be reconsidered, he said.
"Among actions with conflicting US & China statements: immediate negotiation on forced tech transfer, intellectual property & cyber theft; working together on 'nuclear free' N. Korea; US respecting One-China policy and China designating Fentanyl a controlled substance," Rubio said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)