President Trump and Chinese President Xi Jinping agreed to restart trade talks after meeting at the G20 summit in Osaka, Japan on Friday night, easing tensions that have spurred concerns about a global growth slowdown.
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The president declared that relations between the two nations were “right back on track” after the meeting. He also lifted restrictions on U.S. companies, allowing suppliers to sell components to Chinese telecom firm Huawei.
Both sides also confirmed that they do not plan to impose additional sanctions on either side at this time.
“I said that’s O.K., that we will keep selling that product, these are American companies that make these products. That’s very complex, by the way,” Trump said, according to Bloomberg. “I’ve agreed to allow them to continue to sell that product so that American companies will continue.”
All eyes were on Osaka this weekend after Trump teased the possibility of warmer negotiations with Beijing on Wednesday, suggesting it was possible to strike a trade deal with Xi during their meeting; however, he warned that he was prepared to impose a U.S. tariff on all remaining Chinese imports if talks go poorly.
Relations between the U.S. and China soured at the beginning of May when a near-deal crumbled after Washington officials accused China of reneging on some of its promises. Negotiations have not continued, and Trump and Xi have not met face-to-face since December.
The U.S. already imposes a tariff on $250 billion worth of Chinese goods; however, Trump said he would consider lowering the tax rate to 10 percent from the proposed 25 percent during “phase two.”