US and China representatives will have commercial negotiations in Switzerland; Since the Republican returned to the White House in January, his government has imposed rates of up to 145% on Chinese goods
The president of the United States, suggested on Friday (9) reduce the rates that imposed to 80%, a day before trade negotiations between the two countries in Switzerland. Since Trump returned to the White House in January, his government has imposed up to 145% tariffs on China products. Beijing retaliated with 125% rates on US imports and other measures. Since then, bilateral trade has practically paralyzed. “80% of tariffs for China seems right! The decision is from Scott B.,” Trump wrote on his socially trize network over Treasury Secretary Scott Bessent, who will lead the American team in Geneva negotiations.
Bessent and commercial representative Jamieson Greer plan to meet with Chinese vice-minister, he Lifeng, this weekend in Geneva to establish the foundations for commercial negotiations. In another publication, minutes earlier, the Republican wrote in capital letters that “China should open its market to the United States. It would be great for them! Closed markets no longer work!” He added. Planned negotiations in Geneva are “a positive and constructive step in relieving tensions,” said World Trade Organization (WTO) director-general, Ngozi Okonjo-Iweala on Friday. However, analysts have reservations.
“Those of us who remember the First Trade War between China and the United States in 2018-19 [durante o primeiro mandato de Trump] Remember the twists. There were meetings, setbacks. It took a long time to reach a first phase according to AFP Josh Lipsky, director of the American Think Tank Geoeconomics Department Atlantic Council.
“I think it’s mainly to show that both sides are dialoguing, and that’s important,” said Xu Bin, a professor of economics at the China-Europe International Business School (CEIBS), reporters in Shanghai. “Neither sides can afford to allow this to continue,” added the economist, who does not expect the tariffs to return to a “reasonable level.”
Great agreement
Switzerland took advantage of its role as a hostess to address its own case with US officials, while Washington threatens to impose a 31% tariff on its products. Confederation President Karin Keller-Sutter said both sides “agreed” to accelerate negotiations. Since January, Trump, a staunch protectionist, has launched a total trade war: new tariffs on various sectors (25% on steel, aluminum and cars) and universal taxes (10% on most products entering the United States regardless of their origin). And threatens more.
He had planned even higher fares for partners with whom the United States has a commercial deficit, but suspended them until early July, except for China, to give negotiations time. The Republican tycoon repeatedly stated that China is more in a hurry than the United States to reach an agreement because, according to him, the Asian country is strongly dependent on exports and access to the US market.
“They want to do business with us and we want to do business with them. I think this is the goal of Scott Bessent and the Chinese delegation as well,” Terard Lutnick Secretary Howard Lutnick told CNBC on Thursday. “I believe this is the result that the president expects, a world of broken, where we can start negotiating with each other again and work together in many negotiations,” he added. These statements were made after the United States and the United Kingdom announced a “historical” bilateral agreement.
The document was made public this Friday. It has only five pages and “is not legally binding.” This should allow the UK to avoid most American surcharge over its cars and open the British market for more US agricultural products.
The two countries are expected to continue negotiations to formalize their commitments, but US tariffs on British products remain in force for now, according to a British government spokesman. The Trump government has stated that the deal with London benefits both parties, but especially the United States.
*With information from AFP
Posted by Fernando Dias
