Trump Eases Stance on China, Delays Tariffs for 90 Days; Calls Xi Jinping ‘Good Friend’
Washington (The Uttam Hindu): US President Donald Trump on Monday extended the current trade deal with China for another 90 days. The decision came at a time when there were fears of renewed trade tensions between the world's two largest economies.
Trump's stance on China softens, postpones tariffs for 90 days; calls Xi Jinping a good friend: Trump posted on his Truth social platform saying he has signed an executive order extending tariffs on China and that "all other elements of the agreement remain the same." He also wrote that his relationship with Chinese President Xi Jinping is "very good" and that China is "behaving well."
The previous deadline for the tariff extension was set to expire at 12:01 a.m. Tuesday. If the tariffs were reimposed, the U.S. could impose duties of more than 30% on Chinese imports, and Beijing could retaliate by imposing heavy tariffs on American exports. Trump's decision now gives the two countries additional time to resolve their differences.
Trump's decision has been welcomed by American companies. Sean Stein, President of the US-China Business Council, said, "This 90-day tariff exemption will give the governments of both countries time to negotiate. This step is important towards trade stability." Experts believe that Trump's soft stance has also cleared the way for a possible meeting between President Trump and Chinese President Xi Jinping by the end of this year. It is worth noting that in June both the countries agreed to give each other market access in areas such as computer chip technology, petrochemicals and rare earth minerals. Earlier in May, the US and China averted a major economic crisis by temporarily reducing heavy tariffs.
At a meeting in Geneva in May, the two sides limited tariffs on their products to 30% for the US and 10% for China respectively, down from earlier highs of 125% and 145%. Now it remains to be seen whether the two countries are able to reach a permanent agreement in the next 90 days or whether once again the global markets will have to face uncertainty.