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Trump's China tariff ceasefire buys time for talks

Tuesday, July 2, 2019


China-US trade talks.


On June 29, US President Donald Trump and Chinese President Xi Jinping met on the margins of the G20 meeting in Osaka, primarily to discuss the ongoing bilateral trade disputes. The results of the meeting can be considered progress in that they averted a further escalation of tariffs and agreed to resume trade negotiations, the latest round of which broke down seven weeks ago.


  • South-east Asia, which benefits from firms redirecting investment, can probably count on US tariffs remaining in place during negotiations.
  • US pressure on other states to choose 5G hardware from Western companies rather than from Huawei has not been addressed.
  • Trump will face bipartisan anger from Congress if he eases restrictions on Huawei.

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