Was the United States first erupted in the war of tariffs with China? | Trade War News

On Monday, the United States and China Reach an agreement To reduce high -resolution customs tariffs for 90 days. Although both sides claimed that they could withstand a long trade war, they have reached a faster truce than many analysts.

This penetration is a significant decrease in commercial tensions after the tariff war launched by US President Donald Trump, during which he was during it. Announcement “Liberation Day” On April 2.

Trump initially revealed the so -called mutual definitions of dozens of countries before Stop them Just one week later. China, however, did not start from the hook and soon Beijing took revenge on its own tariff.

Dreaming exchanges against Tut, snow at the water amounts. By April 11, the customs tariff for Chinese goods, which enter the United States, reached 145 percent, and the fees on American products to China have swollen to 125 percent.

Tensions were already in Boileling Point at the end of last week when US Treasury Secretary SCOTT BESSENT and Lifeng, Vice President of China, agreed to a ceasefire that would reduce the definitions of 115 percentage points for three months.

American tasks will decrease on Chinese products now to 30 percent, while Chinese definitions on American goods decrease to 10 percent. The stock markets rose on the news, as Nasdak rose 4.3 percent on Monday and gained 20 percent at its lowest level in April.

But one of the main questions has significant effects on the upcoming commercial conversations: Washington or Beijing Flench first?

What did the two countries say?

The suspension of the tariff, which was more severe than what analysts expected, came two days after Commercial conversations in GenevaSwitzerland. On Monday, the United States and China issued a joint statement announcing the deal.

The two countries recognized the importance of their “bilateral economic and commercial relationship” as well as the importance of “the sustainable and long -term and useful economic relationship.”

The United States and China have agreed to create a mechanism to continue to discuss trade relations. China has also agreed to “suspend or cancel” non -tendency measures against the United States, but it has not provided any details.

Speaking to journalists in Geneva last week, Chinese Deputy Prime Minister described the talks as “frank, in -depth and constructive.”

For his part, US Treasury Secretary Bessent told Bloomberg on Monday that “the two sides agree that we do not want to decide the generalized association.”

“The United States will make a strategic separation in terms of the elements that we discovered during Covid National security services – Whether semiconductor, medicine, steel. “

After the conversations ended, Trump praised the negotiations as a “great business deal”, adding, “We are not looking to harm China.” Then he won a personal victory, saying he designed a “full reset” with Beijing.

Elsewhere, Hu XIJIN, the former editor of the Chinese Global Times, said on social media that the deal was a “great victory for China”.

What are the conditions for temporary suspension?

After announcing the cessation of the customs tariff, Bessent said it was “unreasonable” that a mutual tariff for China will decrease to less than 10 percent. However, he said that the level of April 2 – which was set by President Trump by 34 percent – “will be a roof.”

He also said, “We can see some of the fentanel tariff … it goes,” he said. Earlier this year, Trump put a 20 percent tariff on China, accused of not doing enough to stop the flow FentianA very deadly Apostolic Aphondia, in the United States.

Currently, Chinese goods will continue to face a 30 percent tariff. In addition, specific products from China, such as electric cars, steel and aluminum, are subject to a separate tariff and a hypothesis in recent years.

On Monday, the White House also released executive duties to reduce Low -value beams Elements cost up to $ 800 – from China from 120 to 54 percent.

Despite the minimum $ 100 fee on packages from e -commerce sites, TEMU and Shein will remain in place, the increase has been dropped to $ 200 planned on June 1.

On the other hand, Beijing pledged to suspend the forms of non -carrier revenge imposed since April 2, such as export restrictions on critical minerals used by the United States manufacturers in high -tech equipment and clean energy technology.

It is worth noting that the deal does not include concessions from Beijing on several points attached to the United States, like it Huge trade surplus Through an American exchange rate policy or in China, China is accused of maintaining artificially low Renminbi to enhance export sales.

The customs tariff will be suspended for 90 days. They will be subject to reviews based on extensive negotiations in the coming weeks and months.

Who acknowledged more land?

The speed of the United States and China preceded their tariff, with many analysts taking into account that the trade war was causing pain on both sides.

The definitions were to threaten Job losses for Chinese factories workers, upper inflation and empty shelves of American consumers.

But for PiergiusePpe Fortunato, an assistant professor of economics at the University of Newchatel in Switzerland, it is clear who wanted the deal worse.

“First of all, America made more concessions from China. Second, the American economy, which is not currently, depends on China more than vice versa.”

In April, the International Monetary Fund (IMF) warned that the American economy is facing a growing stagnation as a trading war for Trump – and that the accompanying consumer prices – could launch a “great slowdown”.

Fortunato told Al -Jazeera that “Beijing is not in such an unstable position. Take, for example, the latest export numbers.”

China exports grew sharply in April. The strong performance came, an increase of 8.2 percent over the previous year, when Chinese companies converted commercial flows to Southeast Asia, Europe and other destinations.

“I think Washington has exceeded its hand with Beijing,” says Fortunato.

“The White House is in appreciation of the importance of the American market, and it was estimated to estimate China’s success in Diversify its exports away from the United States Since the first Trump’s commercial war “in 2018.

What will happen next?

“It may take a long time to reach a detailed agreement, if possible,” Fortunato notes.

In 2018, the United States retracted a possible trade deal after talks with Beijing. The next 18 months witnessed the exchange of tariffs before a The first stage The deal was signed in January 2020.

However, China has not met all the conditions of this purchase agreement. About 43 percent of $ 200 billion of goods that agreed to purchase from the United States decreased by 2021.

Next, the US trade deficit jumped with China during the Covid-19s, which paves the way for the current trade war.

Earlier this week, Bessent once again hinted that Washington may search for the type of “purchase agreements” that were characterized by the first stage deal.

“The United States has issued noise that it may revolve around more purchase agreements. But the American economy has achieved another success of similar arrangements,” says Fortunato.

During the first trade war of Trump with China, the US -Chinese Business Council estimated that 245,000 American jobs had been lost.

Since the scope of definitions is greater today, even after the end of last weekend, it is fair to assume that more jobs will be delivered.

In the future, Fortunato suspected that the United States “will descend with an average tariff rang between 15 and 20 percent, and even higher for China. This is five times larger than in January … a tremendous change.”