Kathmandu. US President Donald Trump enthusiastically imposed heavy tariffs on China. But now his ego has started to disappear. Trump recently said, “China will not impose a big tariff of 145 percent, but it will not be zero.” ’
Trump then claimed in an interview that Chinese President Xi Jinping had called him. However, China has rejected Trump’s claim. China has maintained its tough stance on the trade war.
Trump’s attitude has been softening lately. But he wants Xi Jinping to start talks on the issue.
The US and China are the world’s two largest economies. The United States is China’s second-largest trading partner, while the U.S. is China’s largest trading partner. 63 percent of the goods imported by the US from China are the final product. These include clothing and electronics items purchased by American customers.
Similarly, 37 percent of U.S. imports are intermediate goods. These are used in machinery, tools and auto industries.
Small and medium-sized American companies account for 41 percent of total imports from China. Therefore, increasing tariffs on Chinese goods will not only increase the price of imported goods, but also increase the cost of production of domestic companies. If the tariffs persist, it will lead to a sharp rise in inflation and increase the likelihood of a recession.
Trump also understands this very well. That’s why he is repeatedly calling Xi Jinping his friend.
Last week, Trump repeatedly said his administration was negotiating with Chinese officials to reach a trade deal. However, Beijing has denied these claims every time. Trump appears keen to ease the trade war, but Beijing has rejected his offer. Beijing’s demand is that the US should remove all tariffs on China.
Trump has imposed tariffs of up to 145 percent on Chinese goods. China has also increased tariffs on US imports by up to 125 percent. The leaders of both countries are saying different things in public. However, there is no possibility of the talks starting right now. – Agency
