President Donald Trump does not cut Chinese tariffs if Beijing does nothing. This was told to journalists at the White House on Friday, a few hours after the President threw the idea of reducing brutal 145% to 80% of the tariff.
Press secretary Karoline Leavitt said: “This was the number that the president threw out of there, and we will see what will happen this weekend.” He made it clear that nothing would change when the Chinese side comes to the table with real concessions.
This will take place when top officials of both countries go to Geneva this Saturday and Sunday. These are the first face -to -face meetings, as Trump pushed US imports up to 145% and China reached the 125% price of American goods.
This back and forth has been hit by brakes between the two largest economy in the Earth, and now it is a real fear that this mess can all transport to a broader economic accident.
Talks begin with digging both sides
Although both governments walk into the room, no one expects a big breakthrough. The meeting took weeks and now it seems that the goal is to understand where to start. Vibe is not friendly. It is tactical. Nobody wants to look like they first came in.
“Neither side wants to look down,” said Stephen Olson, who used to be a US trade negotiator and now works as a senior guest at the Singapore Ishak Institute of Ishaki Ishaki Institute. “The talks are now happening because both countries have decided that they can move forward without making them on the other side.”
The Chinese Foreign Ministry spokeswoman Lin Jian told journalists on Wednesday that the meeting would only be because Washington applied for it. The Ministry of Commerce supported it, saying that talks are the response to the pressure of American companies and buyers.
But Trump doesn't have it. In the White House this week, he rejected hard. “They said we started? Well, I think they should go back and investigate their files,” he said. In his view, China wants the deal because he said their economy is collapsing.
However, the damage on both sides is obvious. Chinese factories have slowed down. Official data show that production capacity has fallen to the lowest level from December 2023 and the latest study in Caixin says that the services are of seven months of low levels. BBC reported The fact that Chinese exporters are stuck in stocks sitting in warehouses, while they are scrambling to find buyers outside the US.
American industries and voters feel pain
Trump claims that tariffs will make America stronger in the long run, but he has also admitted that they are hurt. He told his office that US children could have two dolls instead of 30 dolls and the two could cost a few dollars.
The owner of the Los Angeles toy company told the BBC that their business is arrested by a complete implant in the supply chain. And that's not just toys. In several industries, companies based on parts or goods from China provide deficiency, expenditure on growing and delayed supplies.
In Beijing, officials waited until the long day of May ended before they agreed to sit down. Bert Hofman, Professor of Singapore State University, said, “I think [China] Understands that a transaction is better than a transaction. “He added,” So they have taken a pragmatic view and said, “Ok, well, we have to go these talks.” “
In the meantime, the US economy simply decreased for the first time in three years. This is not something that the Trump administration can easily go. His approval numbers have slipped, more than 60% of Americans said he focuses too much on tariffs. Fear of inflation and another recession will grow and the White House knows it. Unfortunately, this is not very interested.
Cryptopolitan Academy: Soon – a new way to earn a passive income with a defi in 2025. For more information
