Trade War Status:
The long-awaited meeting between President Trump and President Xi Jinping took place over the weekend at the G20 Summit in Japan. The two world leaders came to an agreement that no new tariffs would be imposed. This means the threatened next wave tariffs on $300 billion worth of China-sourced imports will not take effect. However, all previously imposed tariffs remain in place for now.
This déjà vu moment of the last G20 Summit in Argentina, in which the trade war was put on hold in exactly the same way, has left many analysts agreeing that the tariffs will not be lifted anytime soon. While the two sides made some concessions – loosened restrictions on Chinese telecom giant Huawei in exchange for importing American soybeans – the fundamental issues that started the conflict remain unresolved.
Once again, we are left with no timeline or steps to a resolution. This will undoubtedly remain a dark cloud over the world economy, stifling growth until a deal is struck.
Current Tariff Status:
Total US tariffs applied exclusively to China: US$250 billion
Total Chinese tariffs applied exclusively to US: US$110 billion
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