The Duplicitous Dance: Tariffs and China-US Trade Troubles
U.S. Presses China for Tariff Removal Talks
In the ever-evolving tango of global trade, the US and China are locking horns once more, as 145% tariffs on Chinese imports from the US sustain, stoking tensions.
According to sources from Reuters, China is reportedly engaging in unofficial talks with the US regarding these hefty tariffs, as stated by White House economic advisor, Larry Kudlow. Meanwhile, Treasury Secretary, Steven Mnuchin, has highlighted the necessity for tariff reduction to facilitate meaningful discussions and de-escalation of trade conflicts.
Kudlow explicitly mentioned, "There are informal discussions going on between the US and Chinese governments, and China's recent reduction of tariffs on some US goods is a sign of progress." Mnuchin, however, has remained cryptic on specific talks, emphasizing that high tariffs on both sides are counterproductive for any potential negotiations.
While the US administrations flirt with the idea of negotiation, China maintains a hardline stance on the issue. Chinese Foreign Ministry spokesperson, Geng Shuang, repeatedly denies any ongoing negotiations, preferring discussions based on 'equality, respect, and mutual benefit.' In response to US tariffs, China has quietly prepared a list of US goods exempt from its 125% retaliatory tariffs, including some pharmaceuticals, microchips, and aircraft engines, in an attempt to mitigate some of the trade barriers.
The colossal tariffs have drastically diminished exports from China to the US, with estimates by investment bank, Nomura Securities, projecting the loss of up to 16 million jobs in China due to further reduction in Chinese supplies to the US. As factories close their doors and the holiday season ramps up, there's growing concern that unfulfilled orders could lead to a catastrophic disaster for China.
On the contrary, China remains resolute in its pursuit to persevere through these difficult times. Beijing has began diversifying trade relations, strengthening connections with Southeast Asia, Latin America, and Africa. While President Trump claimed in an interview that his administration is conducting negotiations with China and that President Xi Jinping personally contacted him, Beijing vehemently denied these statements, accusing the US of deception.
The US tariffs, amounting to 145% of the initial cost, have translates to a 3.5x increase in the price of Chinese imports compared to 2024, making it almost impossible for manufacturers to sustain their businesses. With no indication of immediate tariff reduction in sight, the future of US-China trade and their respective economies remains uncertain.
- The White House economic advisor, Larry Kudlow, confirmed that China has been engaging in unofficial talks with the US about the hefty tariffs of 145% on Chinese imports.
- Treasury Secretary, Steven Mnuchin, has emphasized the necessity for tariff reduction in facilitating meaningful discussions and de-escalation of trade conflicts with China.
- China has reportedly prepared a list of US goods exempt from its 125% retaliatory tariffs, including some pharmaceuticals, microchips, and aircraft engines.
- The colossal tariffs have led to a drastic decrease in exports from China to the US, with Nomura Securities estimating the potential loss of up to 16 million jobs in China due to further reduction in Chinese supplies to the US.
- Despite President Trump's claims of ongoing negotiations with China and personal contact from President Xi Jinping, Beijing has vehemently denied these statements, accusing the US of deception in the ongoing tariff disputes.
