The sudden pause of US tariffs on dozens of countries, except for China, has sent shockwaves through the global economy. The White House frames the delay as a strategic move to bring other nations to the negotiating table.
The sudden pause of US tariffs on dozens of countries, except for China, has sent shockwaves through the global economy. The move, announced by President Donald Trump just 13 hours after the tariffs took effect, has sparked a relief rally in stock markets and provided a temporary reprieve from the uncertainty caused by the trade war.
The US-China trade tensions have been escalating since 2018, with both countries imposing tariffs on each other's goods.
The main issue is the large trade deficit in favor of 'China' , which has led to concerns about job losses and economic security in the US.
The US has accused 'China' of unfair trade practices, including intellectual property theft and forced technology transfer.
In response, 'China' has imposed retaliatory tariffs on US agricultural products.
The tensions have had a significant impact on global trade, with many countries caught in the middle.
The White House has framed the delay as a strategic move to bring other nations to the negotiating table. According to Trump’s senior trade advisor, Peter Navarro, this will be an ‘American history-making‘ day for trade negotiations. The administration claims that 75 countries have reached out since the new tariffs were announced last week to discuss new trade deals.
US trade negotiations involve discussions between the United States government and foreign governments to establish or modify trade agreements.
These agreements outline rules for international trade, including tariffs, quotas, and intellectual property protection.
Key aspects of US trade negotiations include reducing trade barriers, promoting fair competition, and increasing access to foreign markets.
The 'rules of origin' are a crucial aspect of these agreements, as they determine the country of origin of goods being traded.
The Office of the United States Trade Representative (USTR) leads these negotiations on behalf of the US government.
Major trade partners such as China, Canada, Mexico, and the European Union are frequent participants in these talks.
China initially remained defiant to the raising of the tariff on its exports to 125%, but later expressed a willingness to negotiate ‘based on the principles of mutual respect, peaceful coexistence and win-win cooperation.’ The country’s top leadership is currently meeting to hash out plans for additional stimulus to boost the economy. As the 90-day pause comes to an end in early July, the US and its trading partners will have little time to negotiate trade policies that better suit Washington.
With a population of over 1.4 billion, 'China' has become the world's most populous country.
The country's rapid industrialization and economic growth have transformed it into a global powerhouse.
China is now the second-largest economy in the world, accounting for over 15% of global GDP.
The Belt and Road Initiative (BRI), launched by Chinese President Xi Jinping in 2013, aims to connect 'China' with other parts of Asia, Europe, and Africa through infrastructure development.
This initiative has created new trade routes, investments, and job opportunities worldwide.
The tariffs imposed by Trump are tailored to each country’s trade surplus with the US, but critics argue that they were not calculated based on levies imposed by other countries. The delay does not affect tariffs previously imposed by Trump, including those on steel, aluminum, cars, and vehicle parts.
The pause of US tariffs has provided a temporary reprieve from the uncertainty caused by the trade war. However, the situation remains complex, and it is unclear whether the 90-day delay will be extended or if new tariffs will be imposed on China. As the next chapter unfolds, one thing is certain: the global economy will continue to watch with bated breath as the US and its trading partners navigate the intricate web of trade deals and tariffs.
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The 90-day pause of US tariffs on dozens of countries, except for China, has sent shockwaves through the global economy.
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The White House frames the delay as a strategic move to bring other nations to the negotiating table.
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China has expressed a willingness to negotiate ‘based on the principles of mutual respect, peaceful coexistence and win-win cooperation.’
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The 90-day pause comes to an end in early July, giving the US and its trading partners little time to negotiate trade policies that better suit Washington.
