America and China in 90-day Truce over Tariffs
Kanako Mita, Michiyo Tanabe, and Sawako Utsumi
Modern Tokyo Times
President Donald Trump of the United States of America announced sweeping new international tariffs against all and sundry after taking office. However, it was hinted by Modern Tokyo Times that it was likely to be “a storm in a teacup.”
Accordingly, the 90-day economic truce between America and China indicates that Trump was bluffing. This concerns the high tariff stance he took. Therefore, independent economic deals will be done to reduce the enormous tariff threats mentioned by Trump.
AP News reports, “U.S. Trade Representative Jamieson Greer said the U.S. agreed to drop its 145% tariff rate on Chinese goods by 115 percentage points to 30%, while China agreed to lower its rate on U.S. goods by the same amount to 10%.”
The Commerce Ministry of China said, “This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world.”
Lee Jay Walker (Modern Tokyo Times analyst) says, “Economically and geopolitically, the Trump administration is moving away from earlier stances. In this sense, nations are unsure of the long-term final objective tariff rate.”
The European Chamber of Commerce said, “(while) encouraged by the decision, uncertainty remains…This is partly because certain tariffs have only been suspended for 90 days, and partly because of the erratic nature in which these tariffs were implemented in the first place…”
The BBC reports, “After months of tit-for-tat tariff measures, the US and China have announced a major reduction in levies against each other, albeit temporarily.”
The BBC continues, “It marks a de-escalation of the ongoing trade war between the two countries.”
America’s tariff on China remains high (30%). However, it is manageable compared with what was originally announced by Trump.
CNBC reports, “The deal means “reciprocal” tariffs between both countries will be cut from 125% to 10%. The U.S.′ 20% duties on Chinese imports relating to fentanyl will remain in place, meaning total tariffs on China stand at 30%.”
The Trump administration remains chaotic at times. However, the fentanyl angle is worthy of note because the administration of former President Joe Biden was too weak on this issue.
Modern Tokyo News is part of the Modern Tokyo Times group
http://moderntokyotimes.com Modern Tokyo Times – International News and Japan News
http://sawakoart.com – Sawako Utsumi’s website and Modern Tokyo Times artist
https://moderntokyonews.com Modern Tokyo News – Tokyo News and International News
PLEASE JOIN ON TWITTER
https://twitter.com/MTT_News Modern Tokyo Times
PLEASE JOIN ON FACEBOOK
https://www.facebook.com/moderntokyotimes