Mid-level trade talks resumed in Washington D.C. yesterday after both President Donald Trump and Chinese leader Xi Jinping delayed tariff increases on imports. The mid-level meeting was the first time in nearly two months after the trade was escalated to new heights—which included designating China a currency manipulator by the Trump administration.
The negotiations will try to lay out the groundwork for the high-level talks in early October and according to sources, will focus heavily on agriculture, intellectual property and Trump’s demand that China cut off shipments of the synthetic opioid fentanyl to the United States.
According to three notices published today in the Federal Register, the Trump administration has excluded Christmas tree lights, a series of pet supplies, plastic drinking straws and hundreds of other products from a 25 percent tariff imposed on a total of $250 billion worth of Chinese goods—the exclusions were made to tariffs on Chinese goods announced in July, August and September of 2018. The exclusions are said to be less about taking it easier on China and focused more on providing some relief to U.S. companies said to be affected by Trump’s tariffs.
But whether these negotiations will solve the trade war is still up in the air. Trade experts, officials and executives in both countries say that the problem has morphed into a political and ideological battle that runs far deeper than tariffs. With neither side looking to appease the other, experts, including White House economic advisor Larry Kudlow, say the conflict could take decades to resolve.
According to Politico, by the end of 2019 Trump will have imposed either a 30 percent or a 15 percent tariff on as much as $550 billion worth of Chinese goods as a result of these hikes set to take effect in October and December.
