Trump and Xi to Address Trade Tariffs Dispute
US President Donald Trump and Chinese President Xi Jinping Set to Discuss Trade War
The ongoing trade war between the United States and China is reaching new heights as President Donald Trump and Chinese President Xi Jinping are expected to speak by phone on Tuesday. This comes just hours after both countries imposed tariffs on each other’s economies, escalating tensions further.
Tariffs Imposed on Each Other’s Economies
Beijing wasted no time in retaliating to Trump’s threats by imposing levies on imports of US energy, vehicles, and equipment. In response, Trump announced fresh 10 percent tariffs on Chinese goods, adding to the already existing levies on America’s biggest economic competitor. This move has sent shockwaves through the global economy and has investors on edge as they anticipate volatile market activity in the coming weeks.
Suspension of Tariffs on Mexico and Canada
In a surprising turn of events, Trump decided to suspend tariffs on Mexico and Canada for a month. This decision came after both countries vowed to enhance measures to counter the flow of drugs like fentanyl and undocumented migrants into the United States. The temporary halt on tariffs with Mexico and Canada has provided a brief respite, but the focus remains on the escalating trade tensions with China.
White House Press Secretary Karoline Leavitt confirmed that Trump is scheduled to talk to Xi, but the timing of the call remains uncertain. The outcome of this conversation could have significant implications on the future of trade relations between the two economic powerhouses.
China’s Response to US Tariffs
China’s retaliatory measures include levies on imports of coal, liquefied natural gas, agricultural machinery, and vehicles from the United States. Additionally, Beijing announced export controls on rare metals and chemicals used in industrial applications. The Chinese government condemned the US tariffs as “malicious” and vowed to file a complaint with the World Trade Organization.
Last-Minute Deals and Border Measures
In an attempt to avoid further escalation, Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau struck last-minute deals with Trump to tighten border measures. As a result, tariffs on Mexico and Canada have been put on hold for 30 days while discussions continue on broader agreements. Mexico has already begun deploying a 10,000-strong border troop as part of the agreement.
Trudeau announced that Canada would appoint a “Fentanyl Czar” and designate drug cartels as terrorist organizations in a bid to address the opioid crisis. These measures are part of the countries’ efforts to comply with Trump’s demands and prevent the imposition of tariffs.
The outcome of the phone call between Trump and Xi Jinping will be closely watched by global markets and policymakers as they navigate the uncertainties of a escalating trade war. The future of international trade and economic relations hangs in the balance as the two leaders engage in high-stakes negotiations.