USA is putting additional tariffs against China on hold until 2026 – Trump and Xi in dialogue!

USA is putting additional tariffs against China on hold until 2026 – Trump and Xi in dialogue!

In a notable move, the US government has announced that it will not put threatened additional tariffs on Chinese imports into effect until at least November 10, 2026. The decision came after a meeting between US President Donald Trump and Chinese President Xi Jinping in Gyeongju, South Korea, and caused excitement in international trading circles. However, the current counter-tariff of 10 percent remains in place, while Trump also announced a reduction in the tariff on goods from China imposed due to the fentanyl crisis from 20 to 10 percent, also effective November 10. According to the report by the Schwarzwaelder Bote, there are signs of a potential easing in the tense trade relationship between the world's two largest economies.

What is the background to this measure? President Trump had previously blamed China for the fentanyl crisis in the US, which further strained trade talks. This agreement was reached after pressure from Trump to possibly introduce 100 percent additional tariffs on Chinese products in order to achieve more movement on the issue of rare earths. Trump told the media that these measures were intended to reduce barriers created by China's export controls on rare earths. The rare earths agreement is valid for one year and may be extended following negotiations.

Conversation about the trading relationship

Interestingly, NBC News describes that the meeting between Trump and Xi lasted about 1 hour and 40 minutes and is considered the highlight of Trump's Asia trip. During the conversation, the need to address friction between the two nations was acknowledged, but issues such as the status of Taiwan remained untouched.

In this context, Xi Jinping emphasized the importance of communication at all levels in order to avoid a “vicious cycle of retaliation”. Trump called Xi a long-time friend and a "tough negotiator," indicating that he values ​​relations with China despite the conflicts. However, analysts are skeptical: There appears to be little scope for a comprehensive agreement, but gradual de-escalation is possible.

The way into the future

Looking ahead, Trump is planning a visit to China in April, while Xi Jinping will visit the US “sometime after that.” This could open up new perspectives for trade relations and potentially create the basis for long-term agreements. Although no agreement has been reached over TikTok, a spokesperson for China's Ministry of Commerce said China is willing to work with the US to resolve issues surrounding the app.

Overall, it remains to be seen how trade relations will develop further. However, current developments give hope for a potential calming of the situation. As for next steps, both Trump and Xi Jinping face the challenge of navigating complex trade flows and potentially finding a new balance.

Overall, it shows that when looking for solutions, unconventional approaches can often deliver the best results. A rethink could be beneficial for both sides. Time will tell whether these new negotiating approaches will lead to the hoped-for progress.

Black Forest messenger, Oxford Learner's Dictionaries, NBC News.