The main commercial authorities for Trump He will meet their counterparts Chinese This week to discuss Bass Trade war.
Commercial negotiations, the first facial meeting between the Chinese and state authorities since then Definitions The Treasury Secretary, the Minister of Treasury, said that the revenge began effectively in March, perhaps it will not lead to a commercial agreement. Scott betTuesday (6).
The definitions have reached a high level that a job Between the two countries decreased significantly. Any melting in the trade war can be a welcome sign for companies and consumers in both countries and around the world.
The United States imposed a rate of at least 145 % on most Chinese imports, and China responded with a tariff of 125 % on some American imports.
The latest tariff ships – those who were in the sea when the customs tariffs – almost all of them were announced, and the first ships with goods that are of tariffs reaching the ports.
This means that companies in China and the United States will soon face a difficult decision: to pay a rate that doubles more than the cost of imported products or stops selling them completely. This means that consumers are weeks to try somewhat higher and rare prices.
The punitive definitions have already affected both economists. The American economy was reflected in the first quarter, which is its first shrinking in three years, as companies stored the goods in anticipation of the definitions of Trump’s “liberation day”, which started in the second quarter.
Meanwhile, manufacturing activity in China was contracted at the fastest pace in 16 months in April, and the government is expected to pump the economy with another round of motivation to support it.
Although the commercial predicament in China-is largely the most aggressive, Trump has also imposed significant rates on most other countries around the world: a 10 % global tariff on almost all goods that enter the United States, and more than 25 % of the tariffs on steel, aluminum, cars, auto parts and some goods in Mexico and Canada.
So the world is watching negotiations with the anticipation. The global economists of the International Monetary Fund, the Organization for Economic Cooperation and Development and the World Bank expected that Trump’s trade war will have catastrophic effects on the global economy, which slowly slows down in some countries with the revival of inflation.
The United States is expected to be among the most severe economies that are affected by other countries, including China, from taking revenge on this with higher definitions. Many American economists and large banks on the United States stipulate this year.
The authorities announced on Tuesday that the American commercial representative and the American commercial actor will travel Jameson Jarir to Geneva, Switzerland, where they will meet with the Chinese authorities.
In an interview with Fox News, Bessent said negotiations are a first step, but she tried to reduce expectations for an agreement.
“My feeling is that this will be about a fracture, not about the great commercial agreement … but we need to overcome before we can move forward.”
Despite the ongoing tensions, both countries have indicated for several weeks that the current impasse is not sustainable. Bessent and Trump acknowledged that the definitions are very high.
In an interview with NBC News last week, Trump said he would reduce the customs tariff about China “at some point.”
China was firmly against Trump, and denying its allegations that countries were in active negotiations-denial that Pesin agreed under the oath in a statement to Congress on Tuesday.
But China changed its accent slightly last week, saying it was reviewing the US proposals to start trade negotiations.
Wall Street received news well: Markets rose with negotiation reports. Dow Futures increased by more than 200 points, or 0.6 %. The largest S&P futures increased by 0.7 % and the future of Nasdak increased by 0.8 %.
The Chinese authorities often say in its statements about Trump’s tariff: No one wins a commercial war. This has been evident in recent weeks, as high definitions have imposed significant damage to both economists and frozen trade.
The number of shipping vessels from China to the United States decreased by 60 % in April, according to Flexport, logistical and shipping medium. JPMorgan estimates that Chinese imports of the United States will decrease by up to 80 % by the second half of the year.
“A 60 % decrease in containers means 60 % of the next goods,” Ryan Petersen, CEO of Flexport, told CNN Pamela Brown on Tuesday. “It is just a matter of time until the current stocks are removed, and then we will see the scarcity. Here we will see an increase in prices.”
Jane Seroca, CEO of Los Angeles Port, said on Tuesday that the port of Los Angeles was waiting for 80 ships in May, but 20 % of them were canceled. Customers have canceled 13 trips to June.
“This week, we decrease about 35 % compared to the same period last year, and this next arrival ships are the first to be affected by the definitions imposed against China and other places last month,” Seroka said. “This is why the download volume is very low.”
Despite the increasingly serious warnings and economic turmoil, the two countries are still out of agreement. Both sides remain firm, saying that it will need great preliminary concessions to start negotiations.
Pesin said it might take two to three years to normalize it with China.
Many depend on the conversations in Switzerland. Even without a trade agreement on hand, facial discussions to the facade are encouraging. With both countries caused many damages to themselves, they did not leave a great choice besides starting the ice removal.
“At some point, I will reduce them because otherwise you will not be able to deal with them,” Trump said in an interview with “Meet The Press with Kristen Welker” on Friday. “They really want to do business … their economy is collapsing.”
Professor says there is a structural problem in the global economy
