The White House said Trump and Xi 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.
The White House said talks would take place to resolve within the next 90 days specific U.S. complaints such as forced technology transfer, or else existing 10 percent tariffs would go up to 25 percent.
There are several significant take-aways from this development, including the argument that Trump's hard line, even at times belligerent stance with Beijing, has caused them to blink first, particularly since economic growth in China has already started to feel the brunt of USA tariffs, while US economic growth, though not as robust as a few months ago, is still strong.
News broke on Saturday that the US and China had reached a ceasefire in its ongoing trade war after President Trump met with Chinese President Xi Jinping at the G20 summit in Argentina. The Trump administration has thus far applied tariffs to $253 billion worth of Chinese goods, and has threatened to apply 25 percent tariffs to another $267 billion worth of Chinese merchandise if this round of talks are unsuccessful.
"President Xi and I want this deal to happen, and it probably will".
China responded to earlier United States tariffs with retaliatory levies of its own, targeting $110 billion worth of U.S. products, including soybeans and other agricultural products. "MAKE AMERICA RICH AGAIN", he continued.
"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".
The clock started ticking on December 1, when Trump met in Buenos Aires with China's leader Xi Jinping and agreed to work towards an agreement to roll back the exchange of tariffs on hundreds of billions of dollars in two-way trade.
The two leaders said they would hold off on imposing additional tariffs for 90 days starting December 1 while they seek a solution to their trade disputes.
Trump on Sunday said China also would "reduce and remove" tariffs of 40 percent on cars, though Beijing has yet to confirm the move. At the end of the day, two realities remain: the U.S.is now an energy (oil and gas) producing super power alongside the ranks of Russian Federation and Saudi Arabia, while China, conversely, is the world's largest energy consumer, which gives it less leverage in ongoing trade and even geopolitical negotiations and developments.
The move was confirmed on Monday by White House trade advisor Peter Navarro, . who called Lighthizer Washington's "toughest negotiator".
Early Tuesday, Kudlow said the White House doesn't yet have a deal with China to reduce tariffs on USA -made cars, backtracking from a tweet by the president just two days earlier. Trump jolted auto stocks by announcing late Sunday that a deal had been reached.