The Dow Jones Industrial Average shed 3.1% while the tech-dominated Nasdaq was nearly 4% down by the close. But the remaining details of what was agreed at the dinner remain murky.
The deal means the U.S.is unlikely to match China's 40-percent duties on light vehicles built in the USA, a move the American government has considered in recent weeks.
Chinese State Councilor Wang Yi told reporters, "The two presidents agreed that the two sides can and must get bilateral relations right". "The problem is that something turned out to be nothing". Those lower rates suggested that investors expect the US economy to slow, along with global growth, and possibly fall into recession in the coming year or two. Italy's government is seeking to spend and borrow more, which could elevate interest rates and stifle growth.
The White House said talks would take place to resolve within the next 90 days specific USA complaints such as forced technology transfer, or else existing 10 per cent tariffs would go up to 25 per cent.
Mnuchin also stressed the US expects immediate action from China on its trade commitments.
Chinese purchases for the aforementioned products have almost completely halted after Beijing imposed tariffs on them in response to the US tariffs on Chinese goods.
He also signaled optimism that President Xi Jinping would deliver on his promise, after their meeting in Argentina.
"I am a Tariff Man". "China is willing to increase imports in accordance with the needs of its domestic markets and the people's needs, Wang said, "including marketable products from the United States, to gradually ease the imbalance in two-way trade". Kudlow told reporters at the White House that he believes the president expects China will reduce its vehicle tariffs to zero.
"Although we do not see Qualcomm approaching NXP again in the short-term, we believe the statement is a positive for M&A activity, especially in the tech space", Zhang wrote. We make the finest and cleanest product in the World, and that is what China wants. "Narrow agreements and modest concessions in their ongoing trade dispute will not bridge the wide gulf in their respective economic, political and strategic interests".
Former U.S. State Department official Mintaro Oba said the fact that Trump's statements about the meeting don't match the official White House version of what happened at the G20 means Trump's claims should be taken with a grain of salt.
After some confusion Monday about who would head the talks with China, Trump suggested Tuesday that U.S. Trade Representative Robert Lighthizer would take the lead, "working closely with" Treasury Secretary Steven Mnuchin, economic advisor Larry Kudlow, Commerce Secretary Wilbur Ross and trade advisor Peter Navarro. For America, the next 90 days is about assessing testing how much further China is prepared to compromise. Trump and si entered into a 90-day trading the truce, postponing the scheduled January 1 increase US import duties on Chinese goods worth $ 200 billion with 10 to 25%, while there is discussion of a trade transaction.
"The negotiations with China have already started".
Trump said in a series of tweets on Tuesday that "unless extended", negotiations with China over economic policies the US has long considered objectionable would end in 90 days. The White House statement declares both sides will begin negotiations to resolve differences on forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft.
"China will start with the implementation of the specific matters in which consensus has been reached, the sooner the better", it added, without providing more details.