Positive Steps in US-China Trade Talks
Recent discussions between the world’s two leading economies have shown progress in finding solutions to their trade disagreements. The US and China have signaled their willingness to halt the ongoing trade war and initiate negotiations to address their issues.
The potential avoidance of imposing extra sanctions worth $300 billion is being discussed. Both countries are suggesting a pause on the trade war while they engage in talks to settle their disputes and find common ground.
The upcoming G20 summit in Osaka, Japan will serve as a crucial platform for further dialogue on trade matters. President Trump and President Xi Jinping are scheduled to meet to explore ways to prevent further rounds of sanctions that have already been planned. The outlines of a possible truce have been made public before the summit in Japan.
The key focus of the current proposed truce is to temporarily stop the imposition of new tariffs on $300 billion worth of Chinese goods. Without this pause, nearly all Chinese exports to the US would face tariffs. President Trump has indicated his readiness to levy additional tariffs on China if the G20 talks do not yield positive results, with a potential starting rate of 10%. While there is uncertainty surrounding a firm deadline for reaching an agreement, sources close to the negotiations suggest that a resolution may need to be reached by the end of this year, as reported by Business Insider.
