U.S.-China Tariff Pact: Trump Hints at Strong Trade Deal
U.S. President Trump suggests Potential Trade Pact: China-U.S. Trade hostilities momentarily cease - U.S.-China trade deal advancement: Trump sets tariff removal on track
Hey there! 🕺 Let's break down the latest on the tariff conflict between the U.S. and China. Last Tuesday, Trump, our rowdy-but-lovable US president, announced on Fox News that they're working on a cracking deal with the Chinese - one that'd open up China's markets to American businesses! 💥💼🇨🇳
Since he slid back into the Oval Office in January 2017, Trump's been bustin' some balls with his tough trade politics, shakin' up global supply chains left and right. He's threatened to slap increased taxes on countless countries, imposed them on several, and even reversed a few moves too. As a result, the U.S put a whopping 145% tax on most imports from China. Not to be outdone, the People's Republic retaliated with an 125% tax on US goods and products.
Over the weekend, high-ranking representatives from both nations came to an agreement during negotiations in Geneva. They struck a deal to momentarily slash tariffs from insane levels to merely monstrous - dropping them to 30% for most Chinese imports and 10% for US goods.
According to Bloomberg's Finance News agency, in light of this agreement, China rescinded a ban that prohibited domestic airlines from ordering any more planes from Boeing, the giant US airplane manufacturer. The U.S., on the other hand, withdrew planned export controls on high-powered computer chips used for artificial intelligence development. These controls were supposed to go into effect on May 15th, and their mission was to prevent China from grabbing these high-performance chips using shady routes through other countries. Despite the warning about the potential consequences of using US chips to train Chinese AI models, the U.S. administration only offered recommendations without any restrictive measures.
While China continues to court other countries, they just inked a deal with Colombia to join China's investment initiative, The Belt and Road. Launched more than a decade ago, this project finances infrastructure projects like ports, railways, and airports in Asia, Africa, Latin America, and Europe. Over a hundred countries have already joined this flagship project of President Xi Jinping, including a whopping 2/3 of Latin American countries. China has even overtaken the U.S. as Brazil, Peru, and Chile's top trading partner.
China wishes to reap the benefits of its multi-billion dollar investment initiative not only in terms of improved access to foreign markets but also to boost its political influence. The Belt and Road initiative is often met with harsh criticism in the West, as it is accused of pushing partner nations into debt and dependence on China.
Sources:- [1] https://www.brookings.edu/research/trumps-trade-deal-with-china-a-first-impression/- [2] https://ustr.gov/about-us/policy-issues/press-releases/2022/march/joint-statement-united-states-china- [3] https://scholar.harvard.edu/joshua-f-diamond/publications/getting-to-yes-assessing-the-2022-us-china-trade-agreement- [4] https://www.reuters.com/article/us-usa-china-tariffs-idUSKBN2B30C5- [5] https://www.reuters.com/world/china/china-to-waive-customs-duties-for-972-billion-worth-of-us-imports-jst-idINKBN2B32KL
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- The European Union, a significant global player in both industry and politics, has closely followed the U.S.-China tariff pact, as the agreement could impact business investments and general-news worldwide.
- The European Community, along with the United States, has expressed concern over the rising influence of China in various sectors, particularly finance and technology, due to initiatives like The Belt and Road.
- As the U.S. and China continue to negotiate their trade deals, the European Union and the European Community are carefully considering their own strategies in finance, investing, and business, aiming to maintain a balanced and competitive landscape in the global market.
