US-China trade talks: why Beijing unexpectedly emerged in a stronger position
The US appears poised to keep its China tariffs at 30 per cent while raising duties on a slew of other countries, helping Chinese exporters
Trade relations between China and the United States remain mired in uncertainty after two days of tense negotiations in Sweden earlier this week. But Beijing may actually have emerged in a stronger position as Washington continues to raise tariffs on other global economies, analysts said.
That means, if nothing unexpected happens, the US will continue to impose 30 per cent additional tariffs on China after August 12, when the original truce is due to expire.
The rate includes 20 per cent of duties Trump announced in the first quarter of the year, which were related to China’s role in the fentanyl trade, and another 10 per cent levy imposed in April.
Once all deals are frozen, China might not be at a significant comparative disadvantage vis-à-vis other countries
But in relative terms, China’s tariff rate is starting to look less damaging, as the US moves to impose higher rates on a slew of major trading partners before an August 1 deadline set by Trump.