Trump proposes significant increase in tariffs on China, suggesting a potential rate of 80%, yet allows for the final decision to be made by Bessent.
Trade Talks with China Ahead: Trump's Demands and Concessions Unveiled
The highly-anticipated trade talks between the United States and China, scheduled for this weekend in Geneva, have seen President Donald Trump outline his key negotiation terms. Here's a breakdown of Trump's demands and concessions for the high-profile meeting, as he hopes to recenter the U.S.-China trade relationship.
Market Access and Non-tariff Barriers
One of Trump's primary objectives is to open China's tightly controlled market to American businesses. This means easing non-tariff barriers and fostering a competitive environment for U.S. exports to flourish in China.
Fentanyl and Chemical Precursors
Trump is pressing China to take a tougher stance against the trafficking of fentanyl and its chemical precursors. With the opioid crisis in the U.S., Trump emphasizes the importance of curbing the flow of fentanyl from China.
Trade Balance
Boosting the U.S. trade balance stands as a major concern for Trump, who is pushing for increased Chinese purchases of American goods. This includes reference to the previous agreement where China pledged to buy an additional $200 billion in U.S. exports over 2020 and 2021, a goal China fell short of achieving.
Tariff Reduction: Desperate for De-escalation
Facing mounting pressure, Trump is considering lowering tariffs on Chinese imports as a goodwill gesture aimed at kickstarting negotiations. The current high tariff of 145% on most Chinese goods is unsustainable and risks prolonging the trade dispute.
A Shift Towards Mutual Economic Benefits
Trump now advocates for a sustainable, long-term, and mutually beneficial trade agreement with China, marking a shift away from previous contentious negotiations.
While it remains to be seen how these demands and concessions will impact the upcoming negotiations, de-escalation and a focus on mutual economic benefits promise a fresh approach to the contentious U.S.-China trade relationship.
Sources:
- https://edition.cnn.com/2022/09/02/politics/trump-china-tariffs-trade-talks/index.html
- https://www.brookings.edu/research/u-s-china-trade-conflict-explainer/
- https://www.nytimes.com/2021/10/05/business/trump-china-tariffs-trade-talks.html
Additional Context:
Since Trump announced sweeping tariffs on Chinese imports, the global markets have experienced volatility. With the trade talks now looming, analysts and economists are bracing for a possible de-escalation or further intensification of the trade war. Meanwhile, the US economy faces consequences from the ongoing hostilities, with signs of economic slowdown emerging due to the trade tension.
- The upcoming trade talks between the United States and China, amidst war-and-conflicts and general-news headlines, are crucial for President Trump, as he seeks to address China's market access and non-tariff barriers, and establish mutual economic benefits.
- In light of the ongoing opioid crisis and policy-and-legislation efforts, President Trump has made it clear that he expects China to take a tougher stance against the trafficking of fentanyl and its chemical precursors.
- With the U.S.-China trade balance being a significant issue, finance and business analysts are closely watching the negotiated concessions, particularly regarding increased Chinese purchases of American goods, as part of their coverage on the politics and general-news related to the trade talks.
