At this week’s G20 meeting, President Donald Trump and China’s Xi Jinping agreed to a temporary truce and restart trade talks. This means the current U.S. tariffs will remain in place, but the trade penalties proposed for Section 301, List 4 will be put on hold pending an outcome of what will be the 12th round of trade talks.
List 4 covers approximately $300 billion in goods from China, and if in place, Lists 1-4 effectively cover every import from China.
However, both sides still differ on one item that may prevent a long term solution – trade secrets.
In response, China has also placed tariffs on $110 billion in US goods, mostly focusing on agricultural imports. Some believe the tariffs against farm products (and Trump supporters) are aimed towards pressuring Trump as he heads into the general election next year.