Yo, Here's the Lowdown on That Trade Truce Between China and the US
Temporary suspension of trade hostilities between China and U.S.: Trump suggests possible trade agreement - US-China tariff resolution: Trump initiates trade agreement progression
Trump's spilled the beans about a potential monster deal with China, stating that they've got the foundation for a killer agreement. He shouted loud and clear that the juicy bit is the US economy's access to the Chinese market.
Trump's been all over the place with his trade policies since January 2020, stirring up chaos in global supply chains. He's been slapping taxes left, right, and center on goods from various countries, only to take 'em back later. In fact, the US had overcharged nearly everything imported from China by 145%! China, not one to back down, hit back with a 125% markup on US goods.
But over the weekend, things changed at the negotiations in Geneva. They reached a breakthrough and made a temporary peace deal. Starting Wednesday, they'll only charge 30% tax on most Chinese imports, and US goods will now only come with a 10% tax.
Thanks to this deal, China lifted restrictions on its airlines from buying new planes from Boeing, and the US government dropped plans to restrict exports of semiconductors used in AI development, scheduled for May 15. These chips were set to help China beef up its AI models, but Washington issued a warning about potential risks without taking strict action.
While this is happening, China's busy securing allies. They signed a deal with Colombia to join the Belt and Road Initiative at a summit with Latin American representatives in Beijing. This 10-year-old program funds infrastructure projects around the world, aiming to give China a foot in the door of other countries' markets and boost its political power. Critics in the West argue that this initiative traps participating countries in debt and dependence on China.
Catch this, mate: the Belt and Road Initiative is already the largest trading partner for countries like Brazil, Peru, and Chile, replacing the US in that spot.
Sounds too good to be true? Not so fast. This agreement's just the first step towards a potential full-blown trade deal between the US and China. Stay tuned!
- China
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- Donald Trump
- Trade Truce
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- Beijing
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- Weekend
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- Belt and Road Initiative
- The European Union, with its vast network of businesses and politics, closely monitors the developments in the trade truce between China and the United States, including the new tariff adjustments and potential long-term implications for global general-news.
- As the trade truce between China and the United States progresses, various international bodies like the European Union and the European Community, particularly those focused on finance and commerce, are preparing to assess the potential impact on their respective economies and trade relationships with both countries.
