In the customs dispute, the US and China continued their talks. Lastly, both sides sought a „reasonable“ exchange. Nevertheless, the threat of new US tariffs is still in the room.
At the start of the new round of negotiations in the tariff dispute with the US, China has expressed the hope that an agreement will be reached. He insists on a reasonable and open exchange with his US negotiating partners, Chinese Vice Premier Liu He told Xinhua state news agency. An increase of duties is not a solution. Liu had traveled to Washington for talks scheduled for Thursday and Friday.
US President Donald Trump had previously described it as possible that the dispute could be resolved this week. He received a „nice letter“ from China’s President Xi Jinping. In this he wrote, both should work together and see if one could achieve a result.
New tariffs threaten
Notwithstanding the optimistic comments, Trump had ordered to raise import tariffs on Chinese products in the amount of $ 200 billion to 25% of the previous 10% on Friday night (6:00 CEST). The US Customs confirmed that all preparations had been made. Trump could also stop customs duties at short notice.
In addition, the fees would not apply to deliveries that are already on their way to the US at the time of entry into force. Since July 2018, the two largest economic powers in the world have been covering each other with tariffs, which is already slowing down the global economy. In front of supporters in Florida, Trump accused China of stealing American jobs on Wednesday. The United States could not accept that.
Among other things, Trump is bothered by his country’s huge deficit in trade with China. However, it fell sharply in March by 16.2 percent to $ 20.7 billion. The gap has not been so small for five years. Imports from the Middle Kingdom decreased by 6.1 percent, while US exports to China spiked by an export boom for soybeans soared 23.6 percent.
Opening of the Chinese market demanded
Trump’s demands also include opening up the Chinese market, better protection of intellectual property and less compulsion to technology transfers in the People’s Republic. Until last weekend, there were many signs of an agreement in the trade dispute. Then, apparently, there was a fierce dispute over phrasing in a draft agreement between the two sides. According to US government circles, China has pulled back on almost all issues. In a nearly 150-page original, China systematically deleted passages that were part of the core demands of the US side.
