Washington and Beijing closer to a ‘attainable’ trade deal

US President Donald Trump hinted in direction of a “possible” trade deal with one in every of its key targets for tariff insurance policies, China.
Trump informed the Air Force One reporters that in his first tenure in 2020, the nation had already agreed on what he described as “a great trade deal with China.”
Beijing additionally urged Washington to deal with trade disputes with “mutual respect,” with the Chinese international ministry responding on Thursday that each side ought to resolve their considerations by means of “dialogue and consultation based on equality and mutual respect.”
Ministry spokesman Guo Jiakun warned that “trade and tariff wars have no winners and only serve to damage the interests of people all over the world.”
One month since he assumed workplace, Trump has doubled down on tariffs, concentrating on not simply China but in addition key buying and selling companions like Canada, Mexico, and the European Union. Earlier this month, he imposed a further 10 per cent responsibility on all Chinese imports and is now contemplating additional levies, together with a potential 25 per cent tariff on lumber.
Meanwhile, China has additionally hit again with retaliatory tariffs, slapping 15 per cent duties on US coal and liquefied pure gasoline, and 10 per cent on oil, agricultural equipment, and autos. China’s commerce ministry urged Washington to chorus from utilizing tariffs as a “tool for coercion.”
However, consultants warned that in such a trade warfare, it’s normally the US which has to bear the price of tariffs.
The US President mentioned, “there’s a little little bit of competitiveness, however the relationship I’ve with President Xi (Jinping) is, I’d say, a nice one,” He further revealed that Xi, along with the leaders of France and Britain, could soon visit Washington for talks.
Trump’s aggressive tariff strategy has sent shockwaves across global markets. Japan, which has a major auto industry stake in the US, has formally requested relief from the 25 per cent steel and aluminium tariffs set to take effect on 12 March. Japanese trade minister Yoji Muto is expected to visit Washington to call for an exemption, according to Japanese media reports.
In Europe, the EU has warned of a firm response if Washington imposes tariffs on its goods.
European Commission vice president Maros Sefcovic dismissed Trump’s claims of unfair trade ties, calling US-EU relations a “win-win partnership.” However, he also signalled the Union’s willingness to negotiate, suggesting potential reductions or eliminations of tariffs on industrial products, including automobiles.
Within the EU, Germany remains the biggest trade surplus holder with the US, largely due to its thriving automobile and chemical industries, according to Eurostat.
Reducing deficit
Trump’s tariff push is a part of his broader plans to scale back the US trade deficit. In 2024, the nation’s largest trade surplus stood at $295.4 billion with China, in accordance to the Bureau of Economic Analysis.
However, financial consultants warn that tariffs typically lead to larger prices for American shoppers moderately than punishing international exporters.
As the standoff continues, markets stay on edge, with world leaders bracing for what might be a turbulent interval in worldwide trade.