WASHINGTON D.C – The White House decided to postpone raising the tariffs for Chinese goods from 10 to 25% for 90 days after January 1st.
This was reported by representatives of the Presidential Administration of the United States and the authorities of China after the meeting of leaders of the United States and China Donald Trump and Xi Jinping at the G20 summit in Buenos Aires, which lasted 2.5 hours. The increase in tariffs was scheduled for January 1st.
The parties also agreed not to impose new trade restrictions within 90 days and try to reach a new mutually beneficial trade agreement. If an agreement is not reached, then after 90 days after January 1, fines will be raised.
While this my ultimately be a sign that the Trump administration is showing some degree of reasonableness and flexibility, running contrary to its public political line, it may in reality expose to the world the importance of the Chinese economy upon the solvency of the US.
The Chinese are well known for their summary of the US and its strength posturing internationally – ‘It’s a paper tiger’. Such can probably be said about Trump walking back his commitment to ‘teach China a lesson’. It appears that China has, in its patient way, taught Trump a lesson about imports and exports, and their relative value. Perhaps this comes as well with a note of irony – the communist teaching the capitalist about supply and demand.
Such a deal would not have been made from a position of strength, on the part of the US. This leads to the conclusion that China has succeeded in getting its message across, given the long extension – a serious delay – in the start of anti-Chinese tariffs.
In mid-September, US President Donald Trump ordered the introduction of new duties on goods from China at a rate of 10% totaling about $ 200 billion, promising that from January 1, duties will rise to 25%.