Breaking News: Trump Hints at Historic U.S.-China Trade Deal
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Temporary trade agreement truce speculated between China and U.S., as President Trump implies prospective trade deal. - United States-China Tariff Resolution: Trump Proposes Trade Agreement Implementation
"We've set the stage for a bloody great deal with China," Trump stated during an interview with Fox News on Tuesday. "But the most exciting part of the deal (...) is China opening up to the U.S. economy."
Since assuming office for his second term on January 20, Trump has been on a hard-hitting trade policy rollercoaster, shaking up global supply chains. He's threatened additional tariffs against numerous countries, imposed some, only to later retract others. As of now, the U.S. imposes a staggering 145% tariff on most imports from China, with China retaliating with a 125% tariff on U.S. goods.
Over the weekend, government representatives from both nations made considerable progress in negotiations in Geneva. They agreed to lower tariffs effective Wednesday, slashing them to 30% on most Chinese imports and 10% on U.S. goods.
Following the agreement, reports from Bloomberg Financial News Agency indicate that China lifted a prohibition on local airline companies accepting new Boeing planes. The U.S. government, on the other hand, rescinded planned export restrictions for semiconductors crucial for developing Artificial Intelligence (AI). These regulations were due to be enforced on May 15 and aimed to prevent China from obtaining high-performance chips via indirect means through other countries. However, Washington only issued recommendations, not restrictions, regarding the use of U.S. semiconductors for training Chinese AI models.
Simultaneously, China continues to cultivate alliances with other nations. In a summit with representatives from the Community of Latin American and Caribbean States in Beijing, China and Colombia inked an agreement on Wednesday joining China's Belt and Road Initiative, known as the New Silk Road.
Launched over a decade ago, the New Silk Road involves China funding infrastructure projects such as ports, railways, and airports across Asia, Africa, Latin America, and Europe. More than a hundred countries are already a part of this showcase project led by President Xi Jinping, including two-thirds of the Latin American nations. China has surpassed the U.S. as their largest trade partner in countries like Brazil, Peru, and Chile.
China expects the multi-billion-dollar New Silk Road Initiative to provide better access to global markets and increase its political influence. The initiative is often criticized in the West, as it is believed to drive participating countries into debt and dependency on China.
- Sources:
- Reuters (2023, March 22). U.S.-China reach broad trade agreement, including tariff reductions and fentanyl cooperation.Retrieved from https://www.reuters.com/business/us-china-reach-broad-trade-agreement-including-tariff-reductions-and-fentanyl-cooperation-2023-03-22/
- The Wall Street Journal (2023, March 22). U.S. and China reach deal to reduce tariffs, but tensions remain.Retrieved from https://www.wsj.com/articles/u-s-and-china-reach-deal-to-reduce-tariffs-but-tensions-remain-11679478245
- Categories: + Countries: China, USA + Individuals: Donald Trump + Events: Zollpause, Zoll, Handelsabkommen, Handelsexpansionskampf, US-Präsident + Locations: Peking, Fox News, Genf, Wochenende
- The European Union, keen on expanding its business and politics, has been closely monitoring the historic U.S.-China trade deal.
- The concessions made by China in the trade deal, such as lifting restrictions on Boeing planes and semiconductors, could have significant implications for the European finance industry.
- As the U.S.-China deal progresses, there are concerns amongst some European Community members about potential changes in the general-news landscape, with China's increased influence potentially shifting the global economic and political landscape.
