Donald Trump launched the idea of reducing American commercial prices against China to 80% – while the main peace talks between the teams are preparing to start.
The meeting on Saturday in SwissImplying senior officials of the two nations, is considered an opportunity to relieve the most damaging and most punitive element of the trade war.
The challenge of the two parties is not only a deterioration of the interior perspectives, but a weakening of the world economy.
Writing on his social platform Truth, a few hours after having concluded a provisional agreement with the United Kingdom, the president said: “80% Price On China seems right! Until Scott B (Bessent). »»
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This means that the decision will reside with Scott Bessent – the US Treasury Secretary who will lead the US delegation during talks in Geneva.
The result is impatiently awaited after several cycles of pricing increases which are currently completely 125% rights on American imports in China and 145% on Chinese products arriving in America.
The two levels represent an effective commercial embargo, given the severity of the figures. A figure of 80% against China would remain extremely restrictive.
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But the announcement of talks in Switzerland this week has also been welcomed – in all the financial markets, the actions of the dollar and the world increasing on Friday in the anticipation fully of cooling of commercial hostilities between the two largest economies in the world.
Investors are not only affected by higher prices, if not exorbitant, but also by the impact on the offer.
The effects are already felt in both savings.
The fears of a trade war effectively meant that the American economy contracted in the first three months of the year, while the American central bank has retained interest rate reductions on the grounds that the prices applied to imports by the Trump administration in the world will considerably remove inflation.
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Official data from China has not yet shown obvious pain, but surveys suggest that factory orders are falling.
The fact that China is suffering was confirmed on Wednesday when the country’s central bank reduced interest rates and reduces banking reserve requirements to help release more financing for loans.
Authorities have also agreed wider to help manufacturers.
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We hope that strengthening activity in the economy will help increase prices in general, while China continues to combat deflation.
Officially, China said it wanted the United States to make the first concession.
His delegation in Geneva is led by Deputy Prime Minister He Lifeng – a figure in China which has acquired an international reputation as an effective negotiator.
A spokesperson for the Ministry of Commerce declared about the prospects of breakthrough during confirmation of talks: “The Chinese side has carefully evaluated the information on the American side and decided to agree to contact the American side after having fully considered global expectations, Chinese interests and calls for American companies and consumers.”
The White House economic advisor Kevin Hassett told Sky CNBC on Friday: “Everything that happens with Reunion in Switzerland is very promising to us.
“We see extreme respect, dealing with both parties with respect. We see collegiality and also the sketches of positive developments. ”