The truce in the US-China trade war announced after the G20 talks on Saturday was welcome, but does not appear to pave the way for a more comprehensive trade deal in the foreseeable future. Instead, tariff levels have been frozen, with no deadline set for further progress.
President Donald Trump offered some concessions to China, apparently allowing a resumption of trade with Huawei on its consumer products, while maintaining restrictions on its “strategic” products such as the 5G network system. In return, China has promised to buy more US agricultural products, although the exact amount is unknown.
This outcome was broadly in line with the market’s expectations ahead of the summit.
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