President Donald Trump may have just stunned his critics with a massive agreement with Chinese General Secretary Xi Jinping.
The world leaders have agreed to put tariffs on hold while they hammer out the details of a new trade agreement.
Both President Trump and Xi attended the G20 summit in Argentina this weekend, where they met privately to work out their trade problems.
After the two had dinner together — a meal that reportedly lasted more than two hours — they made the announcement to the media: that it had been decided that both countries would put a 90-day hold on the planned tariffs as they continue to work out their differences in regard to the current trade agreements in place.
Currently, President Trump has import taxes in place against China amounting to roughly $35 billion.
Effective Jan. 1, Trump wanted to increase those taxes to $62.5 billion.
While the two parties will continue to negotiate, the White House was adamant that if a deal is not reached, the expected 25 percent tax across the board will be put into effect.
Part of the Solution
When White House Press Secretary Sarah Huckabee Sanders announced the détente, she said some big concessions were already being contemplated by the Chinese.
Part of the agreement is that the Chinese will make a significant amount of industrial and agricultural purchases, among other products, from the United States.
This agreement sparks a newfound friendship between Xi and Trump.
When Trump first took office, he vowed to create better relationships with countries where the United States has struggled in the past.
With the United States holding such a huge trade deficit with them, China was obviously one of the countries targeted by Trump.
While his presidency got off to a good start, Chinese meddling in North Korea put some early stress on the relationship.
Staring down the barrel of some significant tariffs, however, seems to have flipped the script back in favor of Trump.
The result of this appears to be a new trade agreement on the immediate horizon that will finally benefit the United States.