The United States and China search to extend the provisional suspension of duties After discussions on trade disputes between the 2 world's largest economies ended in Stockholm on Tuesday. U.S. Treasury Secretary Scott Bessent warned, however, that if president Donald Trump does not agree, customs rates for Chinese goods could increase even to 145%.
Negotiations underway, but the decision belongs to Trump
During the gathering in Rosenbad, the seat of the Swedish Prime Minister, the delegations of both countries discussed trade issues, but – as Bessent acknowledged – failed to solve all method problems.
"We had constructive talks, but the president will decide to extend the truce" said Jamieson Greer, U.S. Trade Representative.
In turn Chinese negotiator Li Chenggang assured that both sides would keep close communication after “honest and fruitful” discussions.
Date until 12 August
In May China and the US reached an first agreement to ease the escalation of common customs duties and trade restrictions. The Trump administration then reduced duties on Chinese goods from 125% to 10%and Beijing liberalized the export of neodymium magnets and lowered charges on American products.
However, until 12 August the parties must make a durable solution, otherwise the United States can reconstruct advanced duties.
Disputes beyond trade
During the talks the Americans expressed discontent with, among others, the Chinese oil purchases from Iran and overcapacity China. Experts point out that negotiations are much more complicated than with another Asian countries, as Beijing does not hesitate to usage its position on the marketplace rare earth metals as tools of pressure.
"Unlike the agreement of Trump's first term, China will not accept unilateral concessions. They will demand, among another things, a softening control of technology exports by the US"– Wendy Cutler, Asia Society Policy Institute.
National policy and safety complicates conversations
Former American negotiator Jeff Moon pointed out that current trade talks They intertwin with safety issueswhich makes it hard to scope a compromise.
"Any agreement that will not concern Chinese industrial policy will only be a temporary slice, not a conflict resolution" said Moon.
Meanwhile, the White home is considering Trump's visit to China this year, although the president himself denied on social media to He actively sought the summit with China's leader.
Although both sides declare their willingness to cooperate, The final form of the agreement depends on Donald Trump's decision. If negotiations break down, we endanger to return to a customs war that will hit the global economy.
Source: Nikkei Asia
Leszek B. Glass
Email: [email protected]
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