China hopes for ‘positive' outcomes from tariff talks
While the United States and China slapped escalating tariffs on each other's products this year—reaching prohibitive triple-digit levels and snarling trade—both countries in May agreed to temporarily lower these levels. But their 90-day halt in steeper levies is due to expire Tuesday, with all eyes now on a path forward.
'We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state,' said Chinese foreign ministry spokesman Lin Jian in a statement. He added that Beijing also hopes Washington will 'strive for positive outcomes on the basis of equality, respect and mutual benefit.'
Although both sides reached a pact to de-escalate tensions after high level talks in Geneva in May, their truce has been shaky. In June, key economic officials convened in London as disagreements emerged and US officials accused their counterparts of violating the pact. Policymakers again met in Stockholm last month. But even as both countries appeared to be seeking to push back the reinstatement of duties, US trade envoy Jamieson Greer said last month that President Donald Trump will have the 'final call' on any such extension.
Last week, US Commerce Secretary Howard Lutnick said in an interview that it is likely Trump will further the pause by another 90 days. The White House did not immediately respond to queries on the matter on Monday. Trump said in a social media post late Sunday that he hoped China will 'quickly quadruple its soybean orders,' adding that this would be a way to balance trade with the United States.
For now, fresh US tariffs on Chinese goods this year stand at 30 percent, while Beijing's corresponding levy on US products is at 10 percent. Since returning to the presidency in January, Trump has slapped a 10-percent 'reciprocal' tariff on almost all trading partners, aimed at addressing trade practices Washington deemed unfair. This surged to varying, steeper levels last Thursday for dozens of economies.
Major partners like the European Union, Japan and South Korea now see a 15-percent US duty on their products, while the level went as high as 41 percent for Syria. The 'reciprocal' tariffs exclude sectors that have been separately targeted, such as steel and aluminum, and those that are being investigated like pharmaceuticals and semiconductors. Trump has also taken separate aim at individual countries such as Brazil over the trial of former president Jair Bolsonaro, who is accused of planning a coup, and India over its purchase of Russian oil. – AFP
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