Economics

Trump and Xi's Truce Risks Extending, Not Ending Trade War

Questions raised over the tariff ceasefire and next steps
Both leaders face awkward domestic politics in search for deal

Donald Trump, right, and Xi Jinping, left, along with members of their delegations on Dec. 01.Photographer: Saul Loeb/AFP via Getty Images

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Shawn Donnan

December 3, 2018 at 5:00 AM UTC

Updated on

December 3, 2018 at 1:13 PM UTC

This article is for subscribers only.

President Donald Trump framed his weekend trade truce with China’s Xi Jinping as an “incredible deal,” yet the leaders’ Buenos Aires steak dinner risks extending rather than ending the trade war.

The postponing of a planned U.S. tariff hike on Chinese goods for three months was greeted by analysts and business groups as a welcome détente, avoiding for now a worsening of relations between the world’s largest economies. Investors were also upbeat with stocks jumping and Treasuries falling on Monday.