Soon after the shock of April, US President Donald Trump slapped a massive 145% tariff on Chinese exports. This step marked a major new high in the yearlong tit-for-tat trade war between the two countries. In response, China raised their tariff on U.S. imports to 125%, producing a highly unpredictable trade landscape. These unjust trade restrictions have resulted in an almost 60% drop in American exports to China. This decline has already sparked fears over the ripple effects it will have on global markets.
This weekend, US and Chinese officials will meet in Switzerland for crucial trade talks. They’ll address the rising tariffs and how they affect you. These discussions are binational under normal circumstances, given the complexity and urgency of the situation, they have become even more so. Fortunately, both parties are looking for this common ground. They’re trying to reduce tensions and get trade flowing again, trade flows that have been hugely disrupted by the tariffs.
Last year, President Trump did what many have long wanted and imposed tariffs on various countries to address trade deficits. His intention was to safeguard American industries against predatory competition. Their retaliatory tariffs from China have dramatically increased prices for consumers and American businesses. That effect is being felt on both sides of the Pacific. Many economists have expressed deep concern over the unusual collapse in world trade volume. They caution that continued discord could be deeply damaging for both countries’ economies.
Representatives from each country are set to engage in talks soon on Swiss soil. On the private side, they will deeply engage with each other on issues ranging from possible alternatives or compromises to lower or lift currently prohibitive tariffs. Today, analysts are hopeful that both sides are closely looking for an exit ramp — a way to dial back the conflict. These continued tariffs not only threaten their respective economies but put global economic stability at grave risk.
Trade experts agree that no matter how important the details, much will be determined by each side’s readiness to compromise. President Trump provides strong and unwavering defense of American interests. At the same time, Chinese officials will seek commitments to measures that guarantee the country’s economic growth and stability.