BEIJING (dpa-AFX) - The US Government has decided to put 'on hold' its proposed tariff hike on Chinese imports after high-level bilateral trade talks.
The U.S. Trade Representative last month had imposed 25 percent tariff on 1300 products imported from China to prevent U.S. intellectual property theft and forced transfers of technology.
China hit back by saying that it plans to impose the same tariff on 106 U.S. products worth $50 billion, including aircraft, cars, chemicals, and soybeans.
An atmosphere conducive to ease Washington's stand on high tariff came after the trade talks in Washington reached a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China.
It is estimated that the U.S. had a $375 billion trade deficit with China last year. The Trump administration wants China to reduce it by $200 billion by 2020.
The two days of talks resulted in a framework agreement.
'We're putting the trade war on hold,' US Treasury Secretary Steven Mnuchin said on Sunday.' 'Right now, we have agreed to put tariffs on hold while we try to execute the framework,' he told Fox News.
To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services, the White House said. This will help support growth and employment in the United States.
Both sides agreed on meaningful increases in US agriculture and energy exports. The US Government will send a team to China to work out the details.
China agreed to advance relevant amendments to its intellectual property protection laws and regulations, including the Patent Law.
Both sides agreed to continue to engage at high levels on these issues and seek to resolve their economic and trade concerns in a proactive manner, a statement after the talks said.
President Donald Trump confirmed this by saying 'Barriers and Tariffs to come down for first time.'
'China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products - would be one of the best things to happen to our farmers in many years,' he said on Twitter.
'I ask Senator Chuck Schumer, why didn't President Obama & the Democrats do something about Trade with China, including Theft of Intellectual Property etc.? They did NOTHING.'
Copyright RTT News/dpa-AFX