On the evening of December 1, local time, President Xi Jinping and US President Trump met in Buenos Aires, Argentina.

The two sides decided to stop the trade restrictions such as upgrading tariffs, including not raising the existing tariff rate for each other, and not introducing new tariff-adding measures for other commodities.

The Xinhua News Agency issued a report stating that the two sides decided to stop upgrading trade restrictions such as tariffs, including not raising the existing tariff rate against each other, and not introducing new tariff-adding measures on other commodities.

The two heads of state instructed the economic and trade teams of the two sides to intensify consultations and reach an agreement to cancel the tariffs imposed this year and push bilateral economic and trade relations back to normal track as soon as possible to achieve a win-win situation.

The statement issued by the US stated:

1. The Sino-US trade war will no longer be upgraded, and the two sides will no longer impose new tariffs;

2. The tariffs imposed by the US on the 200 billion US dollars of Chinese goods were still maintained at 10% after January 1, instead of the 25% previously announced;

3. The two sides will step up consultations. Once the negotiations reach an agreement, all tariffs imposed this year may be cancelled.

The $200 billion tariff mentioned here was proposed by the United States in September.

Trump’s tariffs on China will account for nearly half of China’s total exports to the US, and China’s exports to the US last year totaled US$505 billion.

The Office of the US Trade Representative (USTR) subsequently removed approximately 300 product categories from the previously proposed tax collection list, as well as sub-categories for other product categories. Devices such as smart watches, Bluetooth devices and other consumer technology products are excluded from the list. There are still more than $23 billion worth of Internet-connected devices on the tax list. The total value is approximately $200 billion.

The tariff increase will be implemented from September 24, and the tax rate will increase to 25% by the end of 2018.

Obviously, the consultations on December 1 have already shown results. If the agreement is reached in the future to cancel the tariffs imposed this year, it will be extremely stable for the global electronic supply chain that has experienced the storm this year.