A turn in commercial policy
In a significant movement, the US government has decided to reduce tariffs to small shipments from China, reducing the rate of 120% to 54% from this Wednesday. This change occurs just after an agreement between Washington and Beijing that proposes a truce in commercial tensions.
Agreement details
The new policy establishes that imports with less than $ 800 will be subject to a minimum tariff of $ 100. This decision seems to be aimed at facilitating trade and giving a respite to Chinese companies such as Shein and Temu, who had been taking advantage of a legal vacuum to send merchandise without tariffs until the recent imposition of the tax raised by former President Trump.
Context of the Commercial War
The negotiations of this weekend in Geneva culminated with a 90 -day agreement to pause the commercial war that has characterized relations between the United States and China. Both nations have agreed to reduce their tariffs by 115%, although the pact did not directly approach the minimum tariffs.
Future perspectives
President Trump has a conversation scheduled with his Chinese counterpart, Xi Jinping, by the end of this week, hoping to achieve a broken down in the conflict. Although it has ruled out to increase tariffs to 145%, they warn that it could implement new increases if circumstances require it.
Impact on international relations
This setback in Trump’s tariff policy arises after a period of instability in the bond market. Since April, the president had imposed rates greater than 20% to numerous countries, reaching 145% for China. However, it has made concessions in an attempt to stabilize commercial relations, although 10% tariffs are still maintained in a variety of products and 25% in vehicles, steel and aluminum.
Justification of tariff policy
Trump has defended his tariff approach as a tool to negotiate agreements that benefit the United States, arguing that this strategy will not only generate employment and attract factories to the country, but will also contribute to tax reduction and the decrease in national debt through collection.
