Trade War Truce: Extension
As the trade war truce between the US and China nears its end some good news has broken through. The resumption of the trade war proper, initially scheduled for March 1, is going to be delayed. This is due to some “...productive talks…” between the US and China this past week. If the talks continue to be productive President Trump indicates that the trade war will be brought to a proper end.
“I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues. As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement.”
Now, what does it this mean for the immediate future? Economically this definitely gives both superpowers’ economies a confidence boost. Things would have been in dire straits, economically, if a resolution hadn’t been reached. What matters now is waiting to see what’s going to happen with the ongoing talks. Will the resolution be met smoothly? Or will there be an end to the truce and a new beginning for the war? Time will tell.
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