Trump Sends Trade Team to Negotiate with China
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Trump Sends Trade Team to Negotiate with China
(The Center Square) – President Donald Trump plans to send top members of his trade team to London on Monday to talks with representatives from China as the two economic superpowers seek greater cooperation on trade.
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Last month, the two nations reached a temporary truce on tariffs as they worked toward a more comprehensive deal. However, that limited trade truce was in jeopardy until Thursday, when Trump talked directly with China President Xi Jinping.
On Friday, Trump said he was sending Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer to London for the meeting with representatives from China.
“The meeting should go very well,” Trump wrote in a social media post.
Trump said he spoke with Jinping for more than 1.5 hours Thursday morning, almost entirely on trade between the two nations. Trump said the call “resulted in a very positive conclusion for both countries.”
The phone call came almost a week after Trump accused China of failing to uphold the bargain the two countries reached in Geneva last month.
In May, the two countries reached a 90-day deal to reduce high tariffs. Both countries agreed to slash tariffs that had been so high that nearly all trade between the two nations stopped. The U.S. reduced its tariffs on China from 145% to 30% while the two nations continued to talk. China cut its levies on U.S. imports from 125% to 10%.
At the time, S&P Global said the limited agreement would bring limited relief for businesses and consumers. The credit-rating agency said the de-escalation “brings only temporary relief.” It noted that if the world’s two largest economies can’t reach a broader, more permanent trade deal in the next three months, tariffs are likely to increase again, perhaps sharply.
Businesses are likely to remain cautious about hiring in the meantime, according to the S&P report. It further said that consumer spending could remain subdued.
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This article was originally published at The Center Square. Photo Credit: Official White House Photo by Emily J. Higgins.
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Comments
It is becoming increasing clear that Trump has no tariff plan with China continuing to leverage its stranglehold on rare-earth minerals and magnets, which are used in fighter jets, medical lasers, drones, electric-vehicle engines and more. In other words, it was the US which backed down in spite of the pitch by the Trump administration that they have won concessions. China still has a loaded gun on the table that it can bring out at any point. So far, China’s export limits have forced some auto makers to stop production, slowed the manufacturing of drones needed in Ukraine, and further threatened U.S. factories.
China first weaponized its control of rare earths in 2010 with its conflict with Japan over the Senkaku Islands. That was 15 years ago with the Obama, Trump and Biden administrations each having an opportunity to put together a coherent approach.
Developing an alternative supply will take years and require that we work with allies because the we can’t produce and process all the rare earths we need. Japan has pitched a rare-earths alliance as part of tariff negotiations which if the administration was wise would be good to follow rather than than continue to follow this scattered-brain-hit-all-our allies with tariff approach.
Lord, we pray over all those involved in the negotiations with China. Let them reach a fair deal that benefits and blesses America.