Top economic officials from the United States and China will meet for the second day of their high department talks in Geneva on Sunday, discussing the tension arising from President Trump’s trade war.
This discussion has a major impact on the global economy, which has been shaken by the tariffs that the United States and China have imposed on each other in recent months. Mr. Trump has imposed a minimum of 5 percent tariff on all Chinese imports, and China hit American products with 120 percent import tax.
Such disciplinary tariffs are already disrupting the world’s supply chains. American companies are shaking the sources of countries other than China, while on the other hand Chinese factories are ways around US tariffs and further exporting to Southeast Asia. At the same time, many US business tariffs are weighing how much they can raise the price to help offset the expenses.
Economists have warned that trade disputes will reduce global growth and fuel inflation, potentially imposing the United States into a downturn. This economic fear has forced Mr. Trump to deal with China.
After about seven hours of discussion on Saturday, the United States said the United States said it would not release any formal statement on the procedure.
Mr. Trump praised the initial conversation as success.
“A very good meeting with China in Switzerland today,” Mr. Trump wrote about the true social. “Many issues have been discussed, a lot agreed. The total reset is a friendly, but constructive, the manner discussed in the manner.”
Treasury Secretary Scott Besent and US trade representative Jamison Greer are leading the discussion for Washington. For Beijing, China’s Vice Premier for economic policy is leading the discussion led by Lifeng.
The tariff effectively stops trade between the two largest economies in the world.
Before the meeting, Mr Trump suggested that he would be open to reduce the tariff from 5 percent to 5 percent. However, White House spokesman Karolin Levit said China should be exempted to reduce tariffs.
The Trump administration has accused China unjustly subsidize its economy and flood the world with cheap products. The United States is pushing China to take more aggressive steps to prevent the export of Fentanil predecessors who have killed thousands of Americans.
China was faster as China did not intend to exempt trade in response to Mr. Trump’s tariff. Officials emphasized that the nation had agreed to engage in discussions at the United States’s request.
The purpose of trade discussion this weekend was to determine the stage for a broad economic discussion between the two countries. Economists have suspected that there is a possibility of a quick agreement.
Oxford Economics US economist Nancy Vanden Huten wrote in a research note on Saturday, “We think this weekend should reduce the expectations of what could be raised as a result of discussions between US and Chinese officials.”
Mrs. Vanden Huten explained that the United States of the United States reduced the tariff rate to Chinese imports by 5 percent, but the overall effective tariff rate on imports would be three times higher before Mr. Trump was elected.
However, Mr. Trump seems to be ready to talk about any exemption in China as a victory for the United States.
Mr. Trump declared his call to open the market to American companies on Saturday: “Great progress has been made !!!”
Amy Chang Chian Reporting contribution from Taipei, Taiwan.
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