Trade War Truce Announced

The world’s two largest economies have made some headway in their discussions to resolve their current trade disputes.

The possibility of avoiding another $300 billion round of sanctions is now on the table as the US and China have reportedly agreed to pause the trade war as they resume talks to resolve their grievances.

The G20 summit in Osaka, Japan will be the scene of further discussions on matters related to the trade war. Presidents Donald Trump and Xi Jinping will meet to discuss how to avoid upcoming rounds of sanctions, which have been planned long in advance. Details of what this truce could look like have been laid out in press releases ahead of the summit in Japan.

The main point of the current truce would be a pause on upcoming tariffs on $300 billion of Chinese goods. If this round of sanctions isn’t avoided, virtually all Chinese exports into the US would be subject to tariffs. Trump reiterated last Wednesday that he would be willing to impose new tariffs on China if talks at the G20 summit failed to produce results, stating that these tariffs would start at 10%. There is currently some confusion regarding a deadline for an agreement to be reached, but the deadline will likely end up being the end of the year, according to sources reporting to Business Insider.

Written by  
5 years ago