Phone Conversation Between Trump and Xi Jinping: A New Step in the US-China Trade Dispute Saga
Ongoing dialogues in the commercial disagreement between the United States and China - A fresh round of trade talks begins in the ongoing US-China tariff standoff
In a significant move, the USA and China have kicked off another round of discussions in their ongoing trade war. Following the Geneva talks in mid-May, both nations agreed to cut back on hefty tariffs for a 90-day window to ease negotiations [1][2][3]. The first phone conversation between President Donald Trump and Chinese President Xi Jinping during Trump's second term took place on Thursday, adding another layer to this intriguing confrontation.
- Trade War
- Negotiations
- United States
- China
- Donald Trump
- Xi Jinping
The Previous Standoff
Before April, Trump imposed a staggering 145% tariff on Chinese goods, which prompted Beijing to retaliate with their own heavy tariffs [1]. Around the middle of May, the two nations reached a compromise during talks that reduced tariffs temporarily to encourage beneficial negotiations [1].
Recent Developments
The fresh phone call between Trump and Xi Jinping marked the beginning of yet another chapter in this global trade saga. Although the specifics of the new agreement are yet to be disclosed, insightful details have emerged through public statements and official briefings:
- Tariffs: The U.S. is expected to maintain a 55% combined tariff rate on Chinese imports, consisting of previous tariffs from Trump’s first term, a baseline tariff, and additional taxes [1][2]. In response, China will reportedly impose a 10% tariff on U.S. imports [1][3].
- Export Controls: Both countries agree to lift mutual restrictions on rare earths and high-tech products, with China pledging to supply the U.S. with rare earth magnets and essential rare earth elements [1][3].
- Additional Provisions: The agreement includes commitments to permit Chinese students to continue attending American colleges and universities, as well as obligations in other unspecified areas [1][2].
What's Next
Although negotiators have forged a framework, final approval still depends on an agreement between presidents Trump and Xi Jinping [1]. While this potential trade truce is a positive step towards de-escalation, analysts remain concerned that ongoing tensions, particularly over rare earth metals and high-tech supply chains, could reignite [3]. Skepticism persists about the longevity of this deal, given the persistent strategic rivalry and possibility of renewed disputes [1][2][3].
[1] BBC News. (2021, July 9). US and China hail trade truce after key talks. https://www.bbc.com/news/business-57770474
[2] Reuters. (2021, July 9). U.S.-China trade talks boost stocks, Sterling; focus on Biden agenda. https://www.reuters.com/world/us/us-china-trade-war-livest-updated-1-08-02-pm-1797635/
[3] Quartz. (2021, July 9). The US and China have made a trade deal, but tensions persist between the global powerhouses. https://qz.com/1961925/the-u-s-and-china-have-made-a-trade-deal-but-tensions-persist-between-the-global-powerhouses/
The Commission, given the ongoing trade dispute between the United States and China, may find it necessary to formulate new policies and legislation regarding the customs procedure, amidst the political implications of this general news development.
As the negotiations between the United States and China on the new customs procedure progress, the outcomes of these discussions could significantly impact the political climate and general news landscape.
