Trump Claims 'Done Deal' on Trade with China, Beijing Remains Cautious

Strategic Insights -

A deal between the United States and China on trade was touted by President Donald Trump as "done," but Beijing's response suggests it is still a work in progress. Trump made the claim on his social media platform, stating that a 90-day suspension of most tariffs between the two countries was agreed upon. However, China's statement did not confirm the deal, saying only that a "framework had been reached" to implement a "consensus." Trump's announcement sparked skepticism, particularly given his past claims on other topics that have been disputed or proven false.

Key Takeaways:

  • President Trump claimed that a trade deal with China has been reached, but Beijing's response suggests it is still a work in progress.
  • The deal reportedly includes a 90-day suspension of most tariffs between the two countries.
  • China did not confirm the deal, saying only that a "framework" had been reached to implement a "consensus."
  • Trump's announcement was made on his social media platform, which has been the source of several disputed claims in the past.
  • The two sides have engaged in brutal negotiations over the past fortnight, including a recent in-person meeting in London.
  • The deal contains a compromise on tariffs, with the US agreeing to reduce tariffs on Chinese imports and China agreeing to resume exports of rare earths to the US.

Statistics:

  • 90 days: duration of the temporary suspension of tariffs between the US and China.
  • 100%-plus: the rate of tariffs imposed on each other by the US and China.
  • 55%: the percentage of tariffs the US will allegedly retain under the deal.
  • 10%: the percentage of tariffs China will allegedly retain under the deal.
  • 2 days: the duration of talks between US and Chinese negotiators in London.

Sources:

  • Rajghatt, Chidanand, "US-China trade war: 'Deal signed' but details are scarce, and Beijing remains cautious," The Times of India, June 13, 2023.