Following a meeting with US officials, China and the US have agreed to continue their tariff pauses on each other, said China's top trade official.
What Will Be The Consequences?
If no deal is struck by August 12, tariffs could "boomerang", warns US Treasury Secretary Scott Bessent.
US-China Tariff Agreement
Li Chenggang said that the two sides had "comprehensive and in-depth" discussions on microeconomic issues. They agreed in the past meeting on 30% tariffs on US receiving Chinese goods and China collecting 10% on US products.
When & Where Were The Trade Talks Held?
Chinese and US trade officials held their latest round of trade talks in the Swedish capital on Monday and Tuesday to try to break a logjam over tariffs that have skewed the pivotal commercial ties between the world's two largest economies.
"Trump's Team" To Face Challenges?
Wendy Cutler, a former US trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from “a large and confident partner that is more than willing to retaliate against U.S. interests.” Rollover of tariff rates “should be the easy part,” she said, warning that Beijing has learned lessons since the first Trump administration and “will not buy into a one-sided deal this time around.”
Fentanyl-Related Tariffs
According to three people familiar with Beijing’s position, while the earlier discussions in Geneva and London focused on “de-escalation”, in the latest meeting, the Chinese delegation would also discuss fentanyl-related tariffs on Trump’s trade team.
