US President Donald Trump (Photo: Bloomberg)

Last Saturday, Trump agreed with Chinese President Xi Jinping to delay new tariffs for 90 days to negotiate a trade agreement.  A US tariff increase from 10% to 25% on 200 billion USD worth of Chinese goods will be put off in exchange for China agreeing to purchase a very substantial amount of agricultural, energy, industrial, and other products from the US to reduce the trade imbalance. According to Trump, China also agreed to reduce or remove tariffs on cars coming into China from the US. Currently the tariff is 40%".

If after 90 days, the parties are unable to reach an agreement, the 10 percent US tariffs will be raised to 25 percent.