On his way home from the G20 summit, after a trade war ceasefire with China, President Donald Trump was optimistic.>> If it happens, it goes down as one of the largest deals ever made.>> However, on Monday, China was more cautious, with state media describing it as more of a truce.
One of the few details came from a Trump tweet on Monday. He says China will reduce and remove tariffs on US cars, as Reuters' Ben Blanchard reports, that's an unexpected turn.>> President Trump tweeted this morning that China has agreed to cut this 40% tariff on imports of US-made autos into China.
This kind of has caught people a bit by surprise, there certainly has been absolutely no mention of this, not only in the Chinese official readouts, but also in Chinese media. Also, you have to remember that the United States doesn't actually export many of its cars that are made in the United States into China.
Though of course there are many US companies, auto companies, that are producing in China, General Motors being the most obvious one.>> In Argentina, Trump and China's leader Xi Jinping agreed to put additional tariffs on hold. They also set a goal to reach a new trade agreement within 90 days.
Trump agreed not to ratchet up tariffs again on Chinese goods in January. And in return, Beijing agreed to purchase a very substantial amount of US goods.>> And China will be buying massive amounts of product from us including agricultural from our farmers, tremendous amount of agricultural.>> When the White House mentions about how China is going to step up imports of agriculture, again, that's something we haven't seen in the Chinese statement.
It's not clear how that's gonna work especially because, for example, on soybeans, that tariff China has put on US soybeans does at the moment remain. And we don't really know if that is going to be reduced. So if you're a Chinese soybean purchaser, then really why would you buy soybeans from the United States if that 25% tariff is on them?
>> If the two leaders can't come to an agreement by the 90-day deadline, they've agreed to boost tariffs on both sides from 10 to 25%.