Tuesday, August 13, 2019
US-China trade policy ahead.
Starting on August 1, the United States and China have this month imposed more import tariffs on each other’s products following the collapse of the Shanghai round of US-China trade talks. The quick reaction by both indicates that neither sees much prospect of reaching a deal. To protect domestic activity and maintain momentum for further talks, both could apply a lower tariff to products they cannot buy from elsewhere. For example, rare earths, which the United States depends on China for, remain exempt from tariffs.