US-China Trade War

Shanghai, China, a major port and center of commerce. Photo by Li Yang on UnSplash.

China’s Request to Drop Tariffs

China has asked the United States to drop the large tariffs it has put on Chinese goods. This, they say, would show that President Trump is serious about ending the trade war.

China today denied the existence of any consultation or negotiations on the issue of tariffs between China and the US, let alone an agreement on the matter, when Chinese foreign ministry spokesperson responded to media questions, according to Global Times, a news site sponsored by the Chinese government.

Conflicting Reports on Ongoing Talks

The Trump team and Trump himself have said that talks with China are ongoing, leading to a confused picture of what is going on. It is possible that low level preliminary talks are going on that do not involve principals.

The trade war between the US and China has been getting worse. In response to US tariffs, China has returned several Boeing planes it had ordered.

Trump’s Stance on Tariffs

Trump now seems a little more flexible. He said the tariffs on Chinese goods could go down “a lot” but “not to zero”.

Right now, Trump has placed tariffs as high as 145% on goods from China. In return, China has put up to 125% tariffs on US products.

Chinese Officials’ Statements

A Chinese trade official, He Yadong, said that if the US truly wants to solve the issue, it must remove all one-sided tariffs. He used an old saying: “The person who tied the bell must untie it.”

Another Chinese official, Guo Jiakun, said there had been no talks or deals between the countries, and reports claiming otherwise were false.

US Officials’ Responses

Trump has said talks were happening, but this was denied by US Treasury Secretary Scott Bessent, who confirmed no talks had started yet. However, he still believed there was a chance for a big trade deal and called the current conflict “unsustainable”.

Trump said on Tuesday that he’d be “very nice” in talks with China to try and reach an agreement.

Consequences of the Trade War

After China sent back Boeing planes, Trump wrote on his social media that Boeing should “default China” for not accepting planes they agreed to buy. He said this was just one example of China’s actions and again blamed China for fentanyl drugs reaching the US through Mexico and Canada.

Boeing’s boss, Kelly Ortberg, confirmed that China had returned two planes, and a third was expected, all due to trade tensions.

China’s Meeting with Foreign Companies

On Wednesday, China held a meeting with more than 80 foreign companies to talk about how US tariffs are affecting their business in China. Vice Commerce Minister Ling Ji said they hoped foreign firms could “turn crises into opportunities”.

Source: BBC.

Conclusion

The US-China trade war continues to escalate, with both countries imposing high tariffs on each other’s goods. While there are conflicting reports on ongoing talks, it is clear that the trade war is having significant consequences for businesses and economies around the world. It remains to be seen whether the two countries can reach a deal to end the trade war and restore normal trade relations.

Frequently Asked Questions

What is the current state of the US-China trade war?

The US-China trade war is ongoing, with both countries imposing high tariffs on each other’s goods.

What has China asked the US to do to end the trade war?

China has asked the US to drop the large tariffs it has put on Chinese goods.

Are there any ongoing talks between the US and China to resolve the trade war?

There are conflicting reports on whether talks are ongoing, but it is clear that the trade war is having significant consequences for businesses and economies around the world.