Representatives of the two main economies in the world agreed to reduce import rates for 90 days that threatened to paralyze bilateral trade
e Partially suspended on Wednesday and for 90 days the high rates that had been reciprocated in a temporary truce of the trade war that shook the markets and international supply chains. Representatives of the two main economies of the world agreed, during meetings over the weekend, to dramatically reduce import rates that threatened to actually stop bilateral trade.
The American president, he said Washington has a draft for a “very solid” trade agreement with China, which will allow “the opening” of the country’s Asian economy to American companies. “We have the structure of a very solid agreement with China. But the most exciting part of the agreement is China’s opening to business with the United States,” the Republican told conservative Fox News.
Trump caused an earthquake in international trade with the widespread imposition of tariffs, particularly aggressive against China. Beijing responded with similar measures against American imports. After expressive falls in the scholarships and difficulties reported by many companies, the parties started negotiations over the weekend in Switzerland that resulted in an agreement for partial suspension of tariffs for 90 days.
According to the agreement, after midnight on Wednesday in Washington (1h00 in Brasilia), American tariffs on Chinese products fell from 145% to 30% and the taxes charged by Beijing went from 120% to 10%. Chinese authorities have opted for discretion in the comments about what was defined in Geneva and continues their diplomatic campaign to present the country as a more stable partner and strongly advocated to free trade.
“There are no winners in a tariff war or a trade war,” said President XI Jinping at a summit meeting with Latin American and Caribbean countries in Beijing, which was attended by President Luiz Inacio Lula da Silva. The main name of Chinese diplomacy, Wang Yi, encouraged region countries to work in partnership with Beijing against tariffs and criticized “certain world power” that is “obsessed” with the law of the strongest.
Risk of new climbing
The temporary truce does not dissipate the tensions and divergences. United States tariffs are higher because they include 20% Trump taxes for China’s alleged passivity to try to contain Fentanil’s chemical precursors trafficking. According to Washington, these products are sent to Mexico, where they are processed by cartels that then infiltrate synthetic opioid in the American territory.
China denies its responsibility and claims it has adopted measures. On Tuesday, Beijing’s diplomatic spokesman stated that Washington should “stop defaming and assign guilty” to others. Analysts point out that the possibility of a resumption of tariffs after 90 days increases uncertainty.
“A greater more significant reduction in tariffs will be difficult and the risk of a new climb persists,” said Yue Su, an economist at The Economist Intelligence Unit. Trump’s tariff offensive hindered the activity of American companies that depend on the Chinese industry.
Asian authorities have admitted that their economy, already shaken by a persistent real estate crisis and the low level of consumption, is affected by uncertainty in global trade. ”The two parts have suffered a lot of economic pain and can still bear a little more,” Singapore’s AFP Dylan Loh, Deputy Professor Dylan Loh told AFP.
*With information from AFP
Posted by Victor Oliveira
