Ahead of Key Trade Talks: A Look at the Tariffs, Dealmaking, and Dealbreaking Between the World’s Two Biggest Economies
On December 12th, 2019, trade negotiators from the United States and China will meet in London for crucial discussions on their ongoing trade war. This meeting comes after months of escalating tensions between the two economic giants, with both sides imposing tariffs and counter-tariffs on each other’s goods. As the world watches closely, the outcome of these talks could have far-reaching implications for the global economy. So, let’s take a closer look at the tariffs, dealmaking, and dealbreaking between the US and China.
The trade war between the US and China began in July 2018 when the US imposed tariffs on Chinese imports worth $34 billion, citing China’s unfair trade practices. In response, China imposed tariffs on US goods worth a similar amount. This was just the beginning of a series of tit-for-tat tariffs that have been imposed by both countries over the past year and a half. As a result, billions of dollars’ worth of goods have been affected, causing disruptions in global supply chains and negatively impacting businesses and consumers.
The US has accused China of unfair trade practices, including intellectual property theft, forced technology transfers, and currency manipulation. On the other hand, China has criticized the US for its protectionist policies and bullying tactics. The ongoing trade war has not only affected the two countries involved but has also caused instability in the global market, with concerns over a potential economic slowdown.
Despite the tensions, both countries have expressed their willingness to reach a deal and end the trade war. In June 2019, the two leaders, President Donald Trump and President Xi Jinping, met at the G20 summit in Japan and agreed to resume trade talks. Since then, there have been several rounds of negotiations, with both sides making progress on some issues but failing to reach a comprehensive deal.
Now, as the two countries prepare for their upcoming talks in London, there is hope that a breakthrough can be achieved. Recently, there have been positive signs, such as China’s announcement to lift tariffs on some US products, and the US delaying the implementation of new tariffs on Chinese goods. These steps indicate that both sides are willing to make concessions and reach a compromise.
The outcome of these trade talks could have a significant impact on not just the US and China but also on the global economy. A successful deal could ease tensions and boost investor confidence, leading to a positive impact on the stock market. It could also open up new opportunities for businesses and improve trade relations between the two countries.
On the other hand, a failed deal could have severe consequences. The continued imposition of tariffs could lead to a further slowdown in the global economy and negatively affect businesses on both sides. It could also strain diplomatic relations between the US and China, with potential implications for other areas of international cooperation.
One of the key challenges in reaching a deal lies in the differing priorities of the two countries. The US is seeking structural changes in China’s economic policies, while China wants the removal of tariffs on its exports. Finding a middle ground that satisfies both parties will require tough negotiations and compromises.
However, despite the challenges, there is optimism that a deal can be reached. Both countries have a lot to gain from ending the trade war and finding a solution that benefits the global economy. It is in the interest of both the US and China to reach a mutually beneficial agreement that addresses their concerns and promotes fair trade practices.
In conclusion, the upcoming trade talks between the US and China are crucial for the global economy. It is an opportunity for both countries to find a resolution to their trade dispute and put an end to the damaging tariffs and counter-tariffs. With the right attitude and willingness to compromise, a successful deal can be achieved, leading to a healthier and more stable global economy. Let us hope that the negotiators in London can lay the groundwork for a positive outcome and help pave the way for stronger trade relations between the world’s two biggest economies.
