On tariffs, the United States and China restart from a fragile truce

On duties, the United States and China are starting from a fragile truce. Both have accused each other of respecting it. To date, however, the pause that began on May 13 remains in force: tariffs, for 90 days, will no longer be above 100%. However, duties are still in force.

The United States has a 10% generalized base on Chinese goods, plus a 20 because of fentanyl. The federal government accuses China of producing much of the very powerful synthetic drug. Not only that. Sectors such as steel, aluminum and cars pay a 25% tax separately. American goods that want to enter China are instead subject to a 10%.

In addition to this, the two countries are making explicit requests. Washington is asking for an end to restrictions on Chinese exports of rare earths: these are the fundamental minerals for products such as car batteries. For China, one of the priorities is the American ban on products from the giant Huawei. Also because uncertainty is starting to damage the Dragon. In May, there was a sharp slowdown in Chinese exports, which grew by 4.8% after 8.1 in April. Exports to the United States in particular are falling. Last week, there was a phone call between the two presidents. The very conciliatory tones would suggest that the two superpowers could make concessions.