A Potential Breakthrough in the US-China Trade Squabble
Ongoing dialogue focusing on trade disagreements between the United States and China - Ongoing talks in the US-China trade tariff conflict
Hey there! Let's chat about the latest happenings in the US-China trade spat.
Trump stirred things up at the start of April by imposing a mind-boggling 145% tariff on goods from China. In response, China slapped back with their own eye-watering tariffs. However, in mid-May, a glimmer of hope emerged when both nations agreed, during talks in London, to substantially reduce these tariffs for an initial 90-day period to keep the negotiation ball rolling. Most recently, Trump and Chinese President Xi Jinping held their first phone call since the start of Trump's second term.
But what's the real deal?
There's been buzz about a potential framework agreement between the two nations, with former President Donald Trump declaring that the deal is on his hands [1]. But, it's important to note that the Chinese government has been awfully tight-lipped regarding the specifics, including the terms of the agreement and whether President Xi Jinping plans to seal the deal.
The essence of the proposed framework appears to be maintaining existing tariffs: China will hold onto their 10% tariffs on US goods and the US will continue to impose 55% tariffs on Chinese imports. This follows a pact reached in Geneva to temporarily pause tariffs surpassing these levels for 90 days [1].
A noteworthy detail is that Vice Commerce Minister Li Chenggang announced an agreement "in principle," implying that although substantial progress has been made, formal approval and detailed agreements could still be brewing [1].
As for further discussions, there’s been no public word on the content or outcome of that recent conversation between Donald Trump and President Xi Jinping regarding these negotiations. So, stay tuned to see how this develops!
The Commission, on the one hand, has decided to initiate a new round of negotiations on the new customs procedure between the United States and China, which is part of the general news and politics, following the recent phone call between Donald Trump and Chinese President Xi Jinping. These negotiations could potentially impact the policy-and-legislation surrounding US-China trade, particularly with regard to tariffs, as both nations are looking to substantially reduce existing ones, as stated in the London talks.
