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China, US Trade Talks Progresses

After the discussions between US and China at Buenos Aires to remove the stalemate surrounding trade tariffs, China has expressed willingness to work with its beleaguered trade partner.  Both countries decided to suspend imposition of new tariffs on each other for the next 90 days and implement consensus that were reached between both presidents during the G20 meeting earlier this month. The new declaration was made by China after President Trump tweeted about “big progress” being made during telecom with President Xi Jinping of China during the weekend. Spokesperson for China’s foreign ministry Mr. Lu Kang confirmed the optimism expressed by Mr. Trump about expanding cooperation for mutual benefit and control differences for mutual respect.

Before the meeting with China in Argentina, USA was threatening to impose another round of trade tariffs of 25 percent instead of earlier 10 percent on Chinese goods that would cost additional $200 billion. White House had earlier said that the tariffs were being imposed in response to China’s unfair trade practices that have led to large trade deficit with USA. This action was in line with Mr. Trump’s election promises that he will make trade fair with its trade partners and blaming China for making manufacturers in America less competitive.

After becoming president Trump imposed tariffs on several Chinese products ranging from consumer durables like toys, handbags and electronic items to industrial goods. This action urged China to respond with similar tariffs from its side and both nations that are world’s largest economies started imposing tariffs worth billions of dollars on each other. While USA imposed tariffs worth $250 billion on China since July this year, China has imposed tariffs worth $110 billion on goods imported from USA. These tariffs led to American goods becoming costly in China which put pressure on markets. Though both nations have decide to not impose any more tariffs on each other the details of trade between both nations have to be ironed out.

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