Trump Tries to Calm Global Markets After Stocks Drop Sharply

DEVELOPING: US-China trade uncertainty fuels market plunge

Stocks plunge amid confusion over U.S.-China trade truce

The ministry said that China would try to work quickly to implement specific items already agreed upon, as both sides "actively promote the work of negotiations within 90 days in accordance with a clear timetable and road map".

President Donald Trump has declared victory in his trade war with China, claiming that Beijing had made "a big leap forward", but his declaration has reportedly left Chinese officials "puzzled and irritated".

It did not give further details but it crucially did not contradict the U.S. president's remarks that China would buy more goods from the United States to help close their trade gap and structural changes to intellectual property protection. The three-month period halted the addition of new tariffs by both countries and was aimed at resolving the ongoing trade dispute.

China pledged to buy more from the USA, and the White House said the two sides would negotiate "structural changes" to thorny issues plaguing relations, though few details and no dollar amounts were disclosed.

The U.S. had a $335.4 billion trade deficit with China in 2017.

"Ultimately, I believe, we will be making a deal - either now or into the future", he wrote.

"I don't think this meeting or anything else for that matter, right now, is moving toward vehicle tariffs", Kudlow told reporters Monday.

He had earlier also indicated that the deadline for an agreement could be extended.

The Hong Kong newspaper South China Morning Post, citing unidentified sources, said Beijing was preparing to send a 30-member negotiating team to Washington.

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Trump had threatened to tax imported cars, trucks and auto parts, potentially targeting imports that past year totaled $335 billion, and the European Union had warned that it would retaliate with tariffs on products worth $20 billion if Trump put duties on cars and auto parts from Europe.

The change in tone and the increased confusion over what was achieved at the meeting contributed to a sharp decline in the U.S. stock market, which plunged on Tuesday, driven lower by trade worries and fears for future U.S. economic growth. Chinese shares responded in kind, opening lower on Wednesday.

During the talks in Buenos Aires, Trump agreed to delay a scheduled escalation in U.S. tariffs on many Chinese goods, from 10 per cent to 25 per cent, that had been set to take effect on January 1.

Abe was the first foreign leader to meet Trump, flying to NY to see the new American president after his win at the 2016 election.

"I am a Tariff Man", the president said Tuesday in one of a series of tweets about a new round of trade talks with China after the world's two largest economies imposed tit-for-tat tariffs on hundreds of billions of dollars of each other's goods after Trump struck first.

US Treasury Secretary Steven Mnuchin said markets were in a "wait-and-see" mode. "The market is trying to figure out, is there going to be a real deal at the end of 90 days or not", he said at a Wall Street Journal event on Tuesday.

After Trump's December 1 bilateral meeting with China at the G-20 summit, both Trump and National Economic Council Director Larry Kudlow were informed trade barriers with China will be dropped "immediately".

Trump has said China is supposed to start buying agricultural products immediately and cut its 40 per cent tariffs on USA auto imports. "China is supposed to start buying Agricultural product and more immediately".

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.

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