Connect with us

Politics

Trump, China trade war: negotiations, more tariffs, US victory chances

Published

on


trump xi china trade war 2x1
US
President Donald Trump and Chinese President Xi
Jinping

Oliver Contreras/Getty; Greg
Baker/Getty; Shayanne Gal/Business Insider


  • Chinese officials are in Washington, DC, for negations
    with the Trump administration concerning the countries’ trade
    war.
  • The two sides are not expected to come to a solid
    agreement over the next two days, but the talks are a concrete
    step toward alleviating the trade tensions.
  • President Donald Trump appears to be committed to the
    trade war with China for the long haul, so it is unclear how
    much progress can be made.
  • While the China fight continues, there are promising
    signs of easing in the trade battles with Canada, Mexico, and
    the European Union.

Chinese officials are in Washington, DC, on Wednesday in an
attempt to start to resolve the growing
trade war
between China and the US.

The Chinese officials, led by Vice Commerce Minister Wang
Shouwen, are set to meet with Treasury Undersecretary David
Malpass over the next two days. The goal: Reach a deal that could
lift the series of tariffs launched by President Donald Trump and
the Chinese government.

The US is expected to press China to reform its economic
practices, such as the alleged theft of US intellectual property,
while also reducing the trade imbalance between the two
countries. China, on the other hand, will attempt to get Trump to
back off tariffs without having to change much about the way it
conducts economic policy.

The immediate purpose of the talks appears to be paving the way
for more talks, possibly between Trump and Chinese President Xi
Jinping, without an agreement this week.

Expectations for the meetings are low, since they are taking
place between lower-level officials and because the two sides
remain far apart on the issues at hand.

“We do not expect this round of discussion to materially lower
tensions between the two countries or sway President Trump from
increased aggression towards China,” Lewis Alexander, chief US
economists, wrote in a note to clients.

The talks are the first since June and represent the first
concrete step toward ending the trade war since both countries
have enacted the tariffs.

Not out of the woods yet

At the same time, however, the Trump administration is making
moves that could kick the trade war into high gear.

The US is set to impose a 25% tariff on another $16 billion with
of Chinese goods on Friday, bringing the total amount of tariffs
subject to tariffs up to $53 billion (including steel and
aluminum tariffs).

More tariffs are also on the horizon. The US Trade Representative
is moving forward with another set of tariffs
on $200 billion worth
of Chinese goods. Hearings regarding
the items on the list that could be subject to tariffs are
ongoing.

If those tariffs are imposed, more than 50% of all goods coming
into the US from China would be subject to tariffs.

So as one part of the Trump administration tries to end the trade
war with China, another part will increase the pressure.

There is no sign that Trump is ready to back off the trade war
yet. Jonathan Swan and Mike Allen of the news website Axios
reported Tuesday that Trump has made it clear to administration
officials and members of Congress that the trade war with China
is a long-term project — and that he has no plans of backing
down.

The president is all-in, 100% on China,” an administration
official told Axios.

In an interview with Reuters on Monday,
Trump said there is “no timeframe”
for ending the trade
war.

Keeping the focus on China

While the talks and trade war with China move forward, the Trump
administration is dialing back the trade fights on other fronts.


The handshake agreement
between Trump and European Commission
President Jean Claude Juncker appears to have put a pause on
Trump’s proposed tariffs on imported cars and auto parts.

And according
to reports
, the US and Mexico reached a preliminary
breakthrough in negotiations regarding the North American Free
Trade Agreement, or Nafta, which could ease tensions with the
US’s southern neighbor.

But, both of the détentes do not guarantee those fronts in the
trade war are neutralized. Trump once again brought up the
possibility of the auto tariffs during a rally in West Virginia
on Tuesday.

We are going to put a tax of 25% on every car that comes
in from the European Union,”
Trump said
.

The progress on the Nafta front may also fall apart since Canada,
the third Nafta member, has not been involved in recent talks.

Additionally, Trump’s steel and aluminum tariffs remain in place,
along with retaliatory tariffs against the US. And the World
Trade Organization complaints against the US remain ongoing.

It means the trade fights are far from over.

Continue Reading
Advertisement Find your dream job

Trending