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Sino-American truce offers hope for de-escalation of trade war

5 December 2018, at 12:00a.m.

A truce reached between the United States and China during last week's meeting of the G20 offers hope that an escalation of trade tensions between the two nations will be averted

The Presidents of the United States and China met Saturday following the 2018 meeting of the G20.

Colin Robertson, the Vice-President and a Fellow of the Canadian Global Affairs Institute, says that meeting yielded encouraging results.

Mr Robertson said:

"Both President Trump and President Xi Jinping declared a truce and Donald Trump said there will be a 90-day period now under which the Chinese and Americans will try to negotiate an end to what has been effectively a low level trade war with both sides applying huge tariffs to each other and the threat of even more tariffs.

"It's had a chilling effect on China when there are other challenges going on as well.

"In the American economy there are a lot of complaints from, particularly, the farming community who have found their markets disrupted. China, for example, is buying agricultural products from other nations because of the high tariffs that the Chinese have put on American products.

"Overall this is having a disruptive and collateral effect on the global economy, including Canada, because when you interrupt supply chain dynamics which have been in place now for 10 to 15 years, everybody suffers."

As reported by Bruce Cochrane, Farmscape.ca