Commercial dispute included: Trump and China agree on new tariffs!

Commercial dispute included: Trump and China agree on new tariffs!

Hamburg-Nord, Deutschland - Who would have thought that the trade dispute between the USA and China could now take a turn? The two major powers have recently reached a preliminary agreement that aims to significantly defuse the tensions around tariffs and trade restrictions. As mdr reports, US President Donald Trump announced after talks in London that China agreed to deliver magnets and rare earths. In return, Chinese students are still admitted to American universities - a step that is considered positive, especially in academic circles.

So what is at stake? According to the decisions, the tariffs for imports from China to the USA will be 55 percent in the future. For US goods that are exported to China, only 10 percent tariffs are due. This agreement has potential, but could also be overshadowed by the economic reality. Even if the speakers of both nations confirmed that they wanted to do without new punitive tariffs, Beijing was cautious about the results of the negotiations.

The trade conflict and its global effects

The effects of the trade war are already noticeable. The dispute has burdened the global economy and means that investments are reconsidered. Experts warn of excessive optimism: historical reviews show that relaxation is often followed by new conflicts. While the EU benefits from developments here, American companies and consumers have become more reserved in terms of imports from China. The US share of China's imports dropped from 8.4 percent in 2018 to only 6.1 percent in 2019, according to Welt .

Another indication of the changing landscape is the increasing number of Chinese investments in European markets. In 2017, over $ 18 billion flowed in Europe, while direct investments in the United States fell from 9 percent to 4.1 percent. It remains to be seen whether the trend continues or whether new customs regulations could influence.

political developments in Europe

In the shadow of this trade dispute, it is also turbulent in Europe. For example, German Chancellor Friedrich Merz is not planning a turn in Russian politics. During a meeting with the Danish Prime Minister, Merz confirmed that the Federal Government agreed on the Ukraine War and that Russia was regarded as a security risk. In the long term, this attitude could lead to an increase in defense spending in Germany.

Poland, however, is more stable: The pro-European government under Donald Tusk has overcome a vote in parliament. This could be positive for Tusk's agenda - however, it remains to be seen how the right -wing national opposition candidate Karol Nawrocki deals with his possible veto law.