US-China trade negotiations, and rhetoric, continue. As you read this US and Chinese officials, led by Treasury Secretary Scott Bessent, and Vice Premier He Lifeng, are engaged in discussions in Stockholm, Sweden. Both sides hold ace cards up their sleeves, not just in terms of the volumes of trade that these nations do with one another (US imports of Chinese products have collapsed by 90%), but also in terms of the supply of key materials and technologies – even if Mr Trump does not realise it, it is certainly in both sides’ interests to come to a deal … and soon.
Tariffs
As we saw in our May report, Trump’s 145% tariffs on Chinese goods were reduced to 30% baseline (comprised of 10% reciprocal and 20% fentanyl related) whilst a 90-day truce period continues, with Chinese tariffs on US goods were reduced to a 10% baseline. It is important to note that these are baseline tariffs and that further duties can be applied to specific product codes. China, for example continues to apply 15-2...
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