Trade Truce Between US & China 🤝
Trump makes a deal
The US agreed to a temporary trade deal with China on the sidelines of the G20 summit in Argentina. The US agreed to a 90 day pause to allow for negotiations before increasing tariffs on $200 billion of Chinese imports from 10% to 25%. In return, China agreed to start buying certain US goods again.
What is the G20 summit?
The G20 is an annual trade summit with the leaders of 20 nations that comprise 85% of the world’s combined GDP and ⅔ of the world's population. In addition to Trump’s working dinner with China, Trump met over a half dozen world leaders throughout the summit.
The left sees the compromise as a temporary truce and warns that a permanent deal is still far off. They view the absence of a joint statement after the meeting and the slight discrepancies between statements by the US and China as signs that more work still needs to be done. US concerns around intellectual property and technology transfer were also left unresolved.
Washington Times: Trump's China trade truce cheered by U.S. business leaders
The right focuses on the progress made in the temporary agreement. They believe that China made a symbolic gesture by increasing penalties on fentanyl (opioid) sales. They also believe that the dinner going over for an extra hour shows that the two sides are making great progress.
The US and China will spend the next 90 days trying to bridge their differences. However, some analysts have pointed out that Beijing has some “deep structural problems” that could “take even 180 days” to fully resolve. There's also the possibility that the trade war resumes earlier than expected - like when a truce between US and China ended after only eight days in May.
Trump & China's idea of a truce
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