THE trade tensions between the United States and China could be settled after an exchange between the presidents Donald Trump And Xi Jinping, on Sunday suggested senior American officials. This could intervene “very soon”, even from “this week”.
Engaged in a legal battle around his customs duties, Donald Trump revived trade tensions on Friday with China by accusing Beijing of not respecting the terms of the relaxation agreement negotiated on May 12 between the two countries in Geneva.
The United States and China had reached an agreement In order to temporarily suspend the commercial escalation which had brought customs duties on American products at 125 % and those applied to Chinese products at 145 %. Washington and Beijing had agreed to temporarily reduce their customs duties to lower them to 30 % and 10 % respectively, committing to continue discussions for a trade agreement.
“China retains products that are essential to the supply chain of India, Europe and this is not what a reliable trading partner does. I am confident that when President Trump and the president of the Party (Chinese Communist) XI is called, this may be settled, “the American secretary of the Treasury, Scott Bessent, said on Sunday during an interview with the American channel CBS.
According to the Wall Street Journalthe problem would come from the slowness with which China has granted new export licenses for rare earths and other elements necessary for semiconductors and cars.
“The fact that China retains some of the products they had agreed to provide in our agreement is perhaps due to a failure in the Chinese system, or perhaps it is intentional. We will see what it is once President Trump has spoken to the Party President (Xi Jinping), “added Scott Bessent, in reference to the thorny subject of rare earths.
On the other hand, Kevin Hassett, the main economic advisor of the White House, said on ABC that the United States had to Secure their steel supplyjust like Europe, so as not to depend on the Chinese “dumping” in the matter. This issue should be addressed during a “formidable conversation on the commercial negotiations that President Trump could have this week with President XI,” he said.
An exchange “soon”
Asked about the date of exchange between the two heads of state, the American secretary to the Treasury replied: “I believe that we will see something very soon. Kevin Hassett suggested that this exchange could take place this week.
“I believe that they (China) simply take time to implement the agreement (…) We take certain measures to show them how we feel things,” added the secretary of trade Howard Lunick to the Fox chain. “Our president knows what he has to do and he will find a solution, I am convinced,” he added.
On Wednesday, the United States International Commercial Court blocked so-called “reciprocal” customs duties, at least 10 % wanted by Donald Trump as well as those imposed in Canada, Mexico and China as part of the fight against fentanyl, believing that only Congress had the opportunity to do so. A court of appeal seized by the United States government blocked this decisiontime to decide on the bottom.
