Presidents Trump and Xi Jinping make progress on trade talks.
Warther Private Wealth
Investors received a reprieve on trade with China due to go into effect at the start of 2019. Presidents Trump and Xi Jinping agreed to hold off on scheduled US tariffs for ninety days. The current 10% US tariffs are still in place. The ninety-day period doesn’t start until January 1st. Larry Kudlow, who is this White House economic adviser, said China committed to start lifting tariffs and other barriers including reducing the 40% tariffs on autos. “We expect those tariffs to fall to zero.”, Kudlow told reporters. Tech transfers and intellectual property theft will still likely dominate trade talk. President Xi offered a clear commitment to open China’s market to US companies.