In a recent development, China has announced that it is fully prepared for trade negotiations with the United States.
This statement came a day after President Donald Trump hinted at a significant reduction in tariffs imposed on Beijing. This move has brought a sigh of relief to the global markets that were previously rattled by Trump's aggressive trade policies. Furthermore, Trump has also stated that he has no plans to dismiss Jerome Powell, the Chair of the U.S. Federal Reserve.
According to Newsmax, since his return to the White House in January, Trump has imposed additional tariffs of 145 percent on a wide range of products from China. These tariffs were initially imposed in response to China's alleged involvement in the fentanyl supply chain and later due to practices that Washington considered unfair.
In retaliation, Beijing has imposed counter-tariffs of 125 percent on U.S. goods. However, on Wednesday, Beijing reiterated its willingness to engage in trade talks.
"China pointed out early on that there are no winners in tariff wars and trade wars," stated Guo Jiakun, a spokesman for the Chinese Foreign Ministry, during a daily news conference in Beijing. He further added, "The door for talks is wide open."
Chinese President Xi Jinping also cautioned that trade wars "undermine the legitimate rights and interests of all countries, hurt the multilateral trading system, and impact the world economic order," as reported by state media. This reiteration from Beijing comes after Trump acknowledged that a 145% tariff was a "very high" level and that it would "come down substantially."
"They will not be anywhere near that number" but "it won't be zero," Trump stated. "Ultimately, they have to make a deal because otherwise, they're not going to be able to deal in the United States."
These comments were made after Treasury Secretary Scott Bessent described the tariffs as a reciprocal trade embargo at a closed-door event. Bessent expressed his expectation for a de-escalation in the near future, which should bring some relief to the markets.
Trump's recent criticisms of Powell had sparked fears of a dismissal, causing anxiety in markets already unsettled by aggressive trade policies. The President had criticized Powell for warning that the White House's extensive tariffs policy would likely reignite inflation. However, Trump clarified, "I have no intention of firing him," adding that he would like to see Powell be more proactive in lowering interest rates.
Bessent acknowledged that there was much work to be done with Beijing, but he emphasized the need for fair trade and the necessity for China to rebalance its economy. He stressed that the goal was not to decouple with China, noting that container bookings between both countries have recently slumped due to escalating trade tensions.
White House Press Secretary Karoline Leavitt also informed reporters that Washington was "doing very well in respect to a potential trade deal with China".
This week, global finance ministers and central bankers will gather in Washington, with all eyes on the progress of trade talks as countries grapple with Trump's new and wide-ranging tariffs. China's foreign minister Wang Yi also held phone calls with his British and Austrian counterparts, urging the UK and the European Union to collaborate with Beijing in protecting international trade.
Japan is also reportedly planning a second visit to Washington by tariffs envoy Ryosei Akazawa next week, with local media reporting that Tokyo is considering concessions to appease Trump.
These developments indicate a potential shift in the global trade landscape, with countries seeking to navigate the complexities of tariffs and trade wars. As the world watches, the outcome of these negotiations could have far-reaching implications for international trade and economic stability.
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