During a meeting after the G-20 summit, President Trump of the United Stated has agreed not to increase the existing tariffs from 10% to 25%.
In return, according to the U.S., the Chinese president, Xi Jinping, has promised to buy a "very substantial" amount of products from the U.S.. This will consist of products from the agricultural, industrial, and energy markets.
The word from Bejing was that the two countries had agreed to open up their markets.
There is clock on the matter, currently at 90 days. This would be the time the two presidents have to bring this matter to a close, at least on paper, before increases will return.
Another topic mentioned was the already abandoned Qualcomm deal to purchase competitor NXP for $44 Billion. As Qualcomm decided to not risk investing this into a company that pulls two thirds of their revenue from the Chinese market. The Ductch NXP will be paid a two billion dollar termination fee.
Back to the trade war..
Trump was using his usual terms to describe the day(s), stating "it's an incredible deal" that would have an "incredibly positive impact on farming."
Also he said, "What I'd be doing is holding back on tariffs. China will be opening up. China will be getting rid of tariffs."
From a global perspective this likely means that some calm may return, if only temporary. It is not likely that China will give in enough to fit within the promises of Tump, but they might be able to give enough.