A New Deal on the Horizon: The Ongoing Trade Tussle between the US and China
Ongoing trade disagreement negotiations between the United States and China - US and China resuming tariff talks in customs battle
The Trade War continues
After slapping China with hefty tariffs of a whopping 145% back in April, China retaliated with counter-tariffs. However, the two economic behemoths agreed to slash these tariffs during talks in Geneva back in May, aiming for a 90-day reduction to foster negotiations. On Thursday, President Trump marked the commencement of his second term with a phone call with Chinese President Xi Jinping.
Trade Dispute intensifiesNegotiations continueChina and the USLeadership DanceDonald J. TrumpUnited KingdomHoward Lutnick's AbodeUS Commander-in-ChiefJamieson Greer's Soiree
What Transpired in London?The recent round of talks in London yielded a "framework deal" between top trade delegates from both nations. Although the leaders of the US and China haven't formally signed off on the agreement as of yet, its approval remains in the pipeline.
Tariffs Take a BreatherUnder the new arrangement, China will maintain its current 10% tariffs on US imports, while the US will retain hefty tariffs of 55% on Chinese imports. This marks a significant shift from the temporally suspended record-breaking tariffs of over 100% that were reinstated after the Geneva talks in May.
The Calm Before the StormPreviously, the Geneva round saw both parties agree to halt the application of the record-breaking tariffs for a 90-day period, bringing down US tariffs on Chinese imports to 30% and Chinese tariffs to 10%. The final approval of this London agreement needs to be secured before July 9, the day the temporary tariff relief expires, to avoid reinstating the dismal tariffs.
China's SilenceAlthough no official statement has been made by China regarding the finer details of the agreement or President Xi's intention to greenlight the deal, the clock is ticking. The future of global trade relations hangs in the balance as we await the presidential verdicts on this "framework deal." Stay tuned for more updates!
The Commission, given the ongoing trade tussle between the United States and China, has decided to initiate a new round of negotiations on the new customs procedure. This recent round of negotiations, as seen in London, has resulted in a "framework deal" between the top trade delegates from both nations, with the final approval awaited before July 9. This is a critical moment in policy-and-legislation and general-news, as the future of global trade relations, particularly between China and the US, hangs in the balance.
