Trump resists lowering tariffs prior to diplomatic talks with Beijing
Trump Sticks to His Guns on Tariffs Amid U.S.-China Trade Tensions
With a firm "no" in the Oval Office, President Trump squashed the idea of reducing tariffs before a crucial meeting. The setting was the swearing-in ceremony of the new U.S. ambassador to Beijing, David Perdue.
The reason for Trump's reluctance? Halting the influx of the deadly drug, fentanyl, into the U.S. Trump sees this as a vital condition for any future deal.
Trump rejected Beijing's assertion that the dialogue in Geneva was initiated by the U.S., saying they should check their records. Both the U.S. Secretary of the Treasury and Chinese Vice-Premier He Lifeng are set to meet in Switzerland soon, a move announced on Wednesday following tit-for-tat high tariffs.
U.S. Secretary of State Scott Bessent expressed his hope for productive discussions aimed at rebalancing the global economic system in his favor before his trip.
Since Trump kick-started the trade war in 2018, the U.S. has imposed tariffs of 145% on Chinese goods. China reacted with up to 125% tariffs on U.S. imports. Despite these high tariffs, negotiations persist, with a focus on specific sectors like agriculture, technology, and intellectual property.
Last week, China deemed a U.S. proposal to discuss the imposed tariffs by both countries a possibility. But, as of mid-2023, no comprehensive rollback of tariffs has occurred.
Interestingly, while the heated tariff war of 2018-2020 has subsided, the mantle of tariffs remains between the two economic giants. Negotiations are slow-going, and a significant breakthrough isn't expected anytime soon.
Behind the Scenes:
- Tariffs remain a vital tool for exerting pressure on China to comply with agreements and address structural issues.
- Geopolitical tensions are complicating economic negotiations, with both sides wary of appearing weak.
- Domestic politics, global supply chain adaptations, and WTO disputes are among the factors shaping U.S.-China trade relations.
The tariff equilibrium is expected to continue, with sectoral agreements and limited cooperation being more likely than broad trade deals. The risk of further escalation remains, particularly if geopolitical tensions surge.
- The international politics of tariffs, initiated by President Trump in 2018, continue to persist between the economic giants, U.S. and China, even as the heat of the war abates.
- Amid war-and-conflicts and policy-and-legislative tensions, President Trump maintains his stance on tariffs, hoping to halt the influx of the deadly drug, fentanyl, into the U.S.
- In a mutual dance of resistance, both the U.S. and China stand firm on their tariffs, a results of their trade policy, with negotiations focused on specific sectors like agriculture, technology, and intellectual property.
- As the two economic powerhouses prepare for the meeting of their Secretaries and Vice-Premiers in Geneva, discussions on rebalancing the global economic system in favor of the U.S. and addressing the ongoing tariffs are at the forefront of politics and general news.
- The policy of escalating tariffs, aimed at exerting pressure on China, has complicated economic negotiations and taken a central stage in domestic politics, geopolitical tensions, and World Trade Organization disputes.
