The trade war between the United States and China has gone beyond tariffs as the countries increase pressure on each other to cede ground.
Since the start of 2018, Chinese tariffs on U.S. products have jumped to an average of 20.7%.
The Trump administration has threatened to impose tariffs on another $300bn worth of Chinese products if the two sides can’t reach an agreement on trade.
Mr. Trump said on Twitter he had a “very good” call with Chinese President Xi Jinping and their teams would start talks before they met in Japan
U.S. President Donald Trump and Chinese President Xi Jinping will meet at the G20 summit in Japan later in June. Trump said negotiations to end a trade war would restart ahead of the summit, ending a six-week hiatus since talks broke down in early May.
The prospect of a meeting that may defuse tension at the G20 has given financial markets worldwide a lift. But Trump has previously warned that he may go ahead with a new round of tariffs if the meeting does not result in progress on trade.
Many businesses have urged Donald Trump to end the trade war
A letter signed by 173 companies, including Nike and Adidas, says the president’s decision to raise import tariffs will affect the working class. They also warn that higher levies threaten the future of some businesses.
When he raised tariffs earlier this month, Mr. Trump told companies that they could reduce costs by shifting production to the US.
‘Made in China 2025’ plan
China has moved to boost domestic production of higher-value goods (in industries like aviation and semiconductors) as part of its ‘Made in China 2025’ plan, but progress reports have been mixed.
For now, Beijing has given incentives to businesses and consumers to forge new commercial ties. Even if a trade deal is reached in the next few weeks, the Chinese may not revert back to old supply chains