New Delhi
The two largest economies in the world are the end of the ‘Trade ceasefire’ clock between the US and China. Today i.e. August 12, can prove to be decisive for global markets and investors. If there is no agreement at the last moment, President Donald Trump can re-implement heavy tariffs on Chinese imports, and in response, China is also ready to retaliate. This step can create a stir in not only Asia but the whole world economy. The ongoing ‘trade ceasefire’ between the US and China is scheduled to end on Tuesday, August 12. However, Trump has signed an order extending the deadline for tariffs imposed on China for 90 days. This decision has been taken just before the end of the last 90 days of ban deadline.
If the two countries do not extend the time of negotiation or do not compromise a final moment, US President Donald Trump can re -apply heavy tariffs already suspended on Chinese imports. In response, China can also increase its tariff on American goods. Last month, after talks in Sweden, the economic officials of the two countries were busy finalizing a temporary agreement. Trump’s advisors hoped that the President would approve it, but so far he has not made any official announcement. If the tariffs are applied again, it would be a major setback for the global markets. In the beginning of this year, such steps shook the stock markets around the world.
Trump did not make a clear statement on the question asked on this deadline at the press briefing at the White House on Monday, but he said, “We are treating China very well. My relationship with President Xi Jinping is also good.” This year, the US and China had a three -time formal trade talks. Trump had increased the tariff on Chinese goods to 145%, in response to which China banned the export of important rare economy magnets for American industries. There was a 90 -day ceasefire to reduce stress, in which the US agreed to reduce the tariff to 30% and China 10%. American trade representative Jemisson Greer has warned that if the agreement is not reached, tariffs may increase by 80%. Now the talks are not limited to tariffs only.
The US has also raised issues such as China’s additional manufacturing capacity, oil procurement from Russia-Iran and export control of American microchips. Especially on the sale of AI chips, the US has proposed to take 15% of the income from companies such as Nvidia and AMD. This is an unusual financial model. A major trade agreement was signed in Trump’s first term, but it broke during the Kovid-19 epidemic. At that time Trump had clarified that Xi Chinfing would be met only when there is a new agreement. Recently he reiterated “If not a compromise, no meeting.” Today, August 12 is not only the last date for the ceasefire on the US-China tariff, but also an important meeting of Trump and Putin in Alaska. In such a situation, the eyes of the whole world are on the decisions of Washington and Beijing, which can decide the economic and political equations for the coming months.
