US-China Joint Statement: US tariff on Chinese goods reduced to 30%, China tariff on US goods reduced to 10%, agreement lasts for 90 days
U.S. and China to ease tariffs significantly for 90 days, White House announces
Wasn't there already an exemption that NVIDIA, Apple, etc begged for on what makes up 80 something percent of Chinese exports? Electronics/chips/etc?
Ok but 30% is still a lot. It's not the completely comical number it was before but 30% increases on all imports from China is still gonna cause a lot of businesses to go under and prices to go up.
There was already pretty large tarrifs on China from Biden
If China was able to bait and switch them and get the existing under Biden 100% tarrif on EVs down to 30% that's a win. Same with solar panels.
Edit: Only new tarrifs are paused :(
Bessent said the temporary reductions would effectively reduce the level of U.S. tariffs still in place on Chinese goods to about 30%, while China was reducing its levies on American imports to 10%.
Why couldn't the US just destroy itself?! Don't make the rational move! JDPON DON I believed in you!
In case y'all missed it, the (real) Xiaohongshu wrote a very lengthy but well detailed explanation about why it was in China's interest to reduce tariffs quickly:
I read that. To me it just sounds like we'll never see the end of the US Empire in our lifetimes
Yeah, by making themselves indispensable to the US economy they've prevented the US from outright attacking them (so far) but it also means the US economy is indispensable to China's, and they'll keep the US alive and prop it up for far longer than it needs to be.
That’s every xiaohongshu post, nothing matters until the PRC stop being libs
It could still happen, the collapse will just be messier and triggered by climate change
My brain is too fried for xioshonghu's posts, but the US was a big part of their exports. I'm not surprised that they wanted to renegotiate the with the US.
I guess it's a win for china, they've gone from absurdly high tariffs on their goods to just high tariffs.
And I'm sure Trump told everyone in his orbit to make just the right trades to take advantage of this - and when he brings the tariffs back he'll give them a heads up so they can make some more trades before the rest of us know. Then he'll do it all again.
This whole administration is just an insider trading scheme.
Stock market today gonna be like
China will sell the USA the rope it uses to hang itself pull itself out of the hole
china now has too much rope making capacity and needs to find new rope markets or be forever dependent on selling rope to the usa to keep their own economy running
How long until the US signs on to the Belt and Road Initiative?
Just one more road bro it'll solve our sluggish domestic consumption and overproduction issues please bro just listen to me
The agreement statement only lists 3 actions, split into 3 paragraphs. Action 1 says that the US will suspend some of Trump's executive order tariffs on China for 90 days. Action 2 says that China will suspend some tariffs on the US for 90 days. Action 3 says that China and US will set up a mechanism to have more discussions in the future.
30% is pretty close to the number that Trump started with.
The whole thing seems pretty pointless. Trump slowed shipping from China for over a month and the only thing accomplished is higher taxes on people who live in the US.
him and his buddies also made a boat load pumping and dumping the stock market so he accomplished at least two things
As expected, the previous China- US tarrif situation was unsustainable, both countries need each other in a way. Chinese exports to the US make up between 15-20% of total exports (GDP is misleading), and there is no replacing the US consumer market, other markets are already oversaturated with Chinese exports, and quite simply are not as wealthy as the US. The US needs Chinese exports to keep it's economy running, they need consumers to keep buying stuff constantly to make the line go up, and China is the best source of these consumer goods, Chinese manufacturing can't be replaced by any other country at this time.
there is no replacing the US consumer market, other markets are already oversaturated with Chinese exports, and quite simply are not as wealthy as the US
This is not true. The tariff war is a prime opportunity for China to develop its own "internal circulation", aka domestic consumer base (the CPC's own terminology and stated goal) and to increase consumption/development in the global south. The US "consumer base" and "wealth" for imports is really just the American heavenly tribute that it extracts from the world. The US gets commodities on debt that it has no intention of ever paying back, while the rest of the world is forced to trade US debt with each other if they want to do business.
The loosening of tariffs is a missed opportunity. The Chinese government could have continued to maintain pressure on the US. And while it's true that this would have caused damage to export oriented businesses in China, China has a planned economy and certainly could print money to support these export oriented businesses. It could bouy its export industries by providing loans in Yuan to developing countries, so they can purchase Chinese products. The latter policy would pair well with China's earlier decision to remove all tariffs on low-income countries (a much welcome move). Both China and the global south could then trade goods with each other using Yuan or alternative currencies.
The only good part about this move is that it gives Chinese policy makers more time to consider consider their options and take things slowly. However, this time is fundamentally limited, as the American imperialists are becoming increasingly impatient and belligerent.
China has a planned economy
they do to a far stronger degree then most modern nations but still fundamentally do market socialism. pushing the communism button would be irreversible one way trip and might be far too early to do that
The only good part about this move is that it gives Chinese policy makers more time to consider consider their options and take things slowly
It is clear there is no consideration in China beyond "line go up" when it comes to their capitalism action plan. This is the fundamental issue that the USSR had to contend with in the 20s-40s, which ultimately planted the seed for fascism, reaction, and the eventual dissolution of the USSR.
Nothing ever happens proved right once again
Kinda disagree on this. 30% is still a massive mark up that will torpedo a lot of businesses. But it’s also small enough that Trump will look like he caved to the Chinese. Real art of the deal galaxy brain move
that Trump will look like he caved to the Chinese.
Idk, his followers and the media infrastructure surrounding it will play it as a win. And it sort of is (they will likely go extra hard even more on war with China now as they more slowly decouple, especially with that Hegseth at the helm, who wants to nuke China personally in his "crusade").
Why did China put lower tariffs than the US? Seems like an L, doesn't seem like they needed to do this, what is China even buying from the US?
My guess is that China doesn’t need tariffs to outcompete nonexistent US industry. China this whole time has wanted a return to status quo and really doesn’t care for escalation just to save face.
This lets Trump brag about winning without him actually winning much of anything
MAGA is no doubt lauding this as a brilliant 69D chess move
booooo why'd China cave
art of the deal