<div class="x_elementToProof" data-olk-copy-source="MessageBody">After weeks of escalating tension, the United States and China have agreed to de-escalate their trade war during high-level talks in Geneva. In a major diplomatic breakthrough, both sides have agreed to unwind the steep tariffs imposed on each other&rsquo;s goods since early April.</div>
<div class="x_elementToProof" data-olk-copy-source="MessageBody"></div>
<div class="x_elementToProof" data-olk-copy-source="MessageBody">The US will reduce its combined duties on most Chinese imports from 145 per cent to 30 per cent for a period of 90 days. In response, China will slash its duties on American goods from 125 per cent to 10 per cent, also removing other retaliatory measures implemented over the past month.</div>
<h2 class="x_elementToProof"><b>US cuts &lsquo;de minimis&rsquo; tariff on China shipments</b></h2>
<div class="x_elementToProof">In line with this truce, according to Reuters, the White House has announced a significant rollback of a controversial tariff policy. Starting 14 May, Washington will reduce the so-called &lsquo;de minimis&rsquo; tariff on Chinese shipments to 54 per cent from the previously imposed 120 per cent. The flat fee of $100 per shipment will remain in place, according to an executive order issued by the White House on Monday as reported by Reuters.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The de minimis rule allows goods valued at up to $800 to enter the US via postal services with little or no inspection. Previously, such items from China enjoyed duty-free entry, but that changed in February when President Donald Trump scrapped the exemption and slapped a 120 per cent tariff or a planned $200 flat fee&mdash;on these packages. The move was aimed at curbing the surge of Chinese e-commerce shipments from companies like Shein and Temu, and addressing concerns about the misuse of this channel for smuggling drugs such as fentanyl, according to Reuters.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Introduced in 1938 to reduce administration burden, under former US President Barack Obama, the threshold was raised from $200 to $800. This led to a massive e-commerce boom in the states. According to US Customs and Border Protection's website, shipments entering states have grown by 600 percent in the past 10 years. From 139 million shipments in 2015 it went to over one billion in fiscal year 2023 and in fiscal year 2024, it crossed 1.36 billion mark.</div>
<div class="x_elementToProof" aria-hidden="true">&nbsp;</div>
<div class="x_elementToProof">Now, as per Reuters, with trade tensions easing, the White House has decided to amend the 120 per cent rate to 54 per cent and shelve the $200 flat fee, keeping it at $100 instead. The new rates will take effect from 12:01 a.m. (0401 GMT) on 14 May.</div>
<h2 class="x_elementToProof"><b>China lifts ban on Boeing aircraft deliveries</b></h2>
<div class="x_elementToProof">In a reciprocal gesture, China has lifted its month-long ban on deliveries of Boeing aircraft, according to a Bloomberg report. The decision, communicated to Chinese airlines and government agencies earlier this week, comes in the wake of the tariff truce and is expected to provide an immediate boost to the American aviation giant.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">According to Bloomberg, the ban had severely impacted Boeing, as it found itself caught in the crossfire of the trade war. After President Trump&rsquo;s sweeping tariffs on key trading partners, Beijing retaliated by ordering domestic airlines to halt Boeing deliveries, pricing the US-made jets out of the Chinese market.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">While China is one of Boeing&rsquo;s most important markets, expected to account for 20 per cent of global aircraft demand over the next two decades, according to Boeing&rsquo;s 2023 Commercial Market Outlook&mdash;the company has struggled in recent years due to both trade tensions and internal quality issues. In 2019, China became the first country to ground the 737 Max after two fatal crashes. In early 2024, the company faced renewed scrutiny after a door plug incident mid-flight triggered another quality crisis.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The easing of restrictions allows around 50 Boeing aircraft scheduled for delivery to China this year to proceed, according to Bloomberg. The report also noted that Boeing had already begun redirecting some of these aircraft to markets like India, Malaysia, and Saudi Arabia.</div>
<h2 class="x_elementToProof"><b>A temporary reprieve or a turning point?</b></h2>
<div class="x_elementToProof">While these policy shifts mark a notable thaw in US-China relations, the concessions come with a time limit. The reduced tariff rates and other eased measures are set to last only 90 days unless further progress is achieved. The Geneva talks have opened a window for negotiation, but experts caution that the deal is a temporary reprieve, not a permanent resolution.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">With geopolitical rivalry, domestic pressures, and industrial competition continuing to loom large, the next round of negotiations will be crucial in determining whether the world&rsquo;s two largest economies can stabilise their fraught trade relationship&mdash;or fall back into economic confrontation.</div>

Business & Economy: The US-China trade deal marks a crucial step towards normalizing trade relations between the two economic giants, potentially paving the way for future cooperation.

After weeks of escalating tension, the United States and China have agreed to de-escalate their trade war during high-level talks in Geneva. In a major diplomatic breakthrough, both sides have agreed to unwind the steep tariffs imposed on each other’s goods since early April. The US will reduce its combined duties on most Chinese imports from 145 per cent to 30 per cent for a period of 90 days. In response, China will slash its duties on American goods from 125 per cent to 10 per cent, also removing other retaliatory measures implemented over the past month. US cuts ‘de minimis’ tariff on China shipments In line with this truce, according to Reuters, the White House has announced a significant rollback of a controversial tariff policy. Starting 14 May, Washington will reduce the so-called ‘de minimis’ tariff on Chinese shipments to 54 per cent from the previously imposed 120 per cent. The flat fee of $100 per shipment will remain in place, according to an executive order issued by the White House on Monday as reported by Reuters. The de minimis rule allows goods valued at up to $800 to enter the US via postal services with little or no inspection. Previously, such items from China enjoyed duty-free entry, but that changed in February when President Donald Trump scrapped the exemption and slapped a 120 per cent tariff or a planned $200 flat fee—on these packages. The move was aimed at curbing the surge of Chinese e-commerce shipments from companies like Shein and Temu, and addressing concerns about the misuse of this channel for smuggling drugs such as fentanyl, according to Reuters. Introduced in 1938 to reduce administration burden, under former US President Barack Obama, the threshold was raised from $200 to $800. This led to a massive e-commerce boom in the states. According to US Customs and Border Protection's website, shipments entering states have grown by 600 percent in the past 10 years. From 139 million shipments in 2015 it went to over one billion in fiscal year 2023 and in fiscal year 2024, it crossed 1.36 billion mark. Now, as per Reuters, with trade tensions easing, the White House has decided to amend the 120 per cent rate to 54 per cent and shelve the $200 flat fee, keeping it at $100 instead. The new rates will take effect from 12:01 a.m. (0401 GMT) on 14 May. China lifts ban on Boeing aircraft deliveries In a reciprocal gesture, China has lifted its month-long ban on deliveries of Boeing aircraft, according to a Bloomberg report. The decision, communicated to Chinese airlines and government agencies earlier this week, comes in the wake of the tariff truce and is expected to provide an immediate boost to the American aviation giant. According to Bloomberg, the ban had severely impacted Boeing, as it found itself caught in the crossfire of the trade war. After President Trump’s sweeping tariffs on key trading partners, Beijing retaliated by ordering domestic airlines to halt Boeing deliveries, pricing the US-made jets out of the Chinese market. While China is one of Boeing’s most important markets, expected to account for 20 per cent of global aircraft demand over the next two decades, according to Boeing’s 2023 Commercial Market Outlook—the company has struggled in recent years due to both trade tensions and internal quality issues. In 2019, China became the first country to ground the 737 Max after two fatal crashes. In early 2024, the company faced renewed scrutiny after a door plug incident mid-flight triggered another quality crisis. The easing of restrictions allows around 50 Boeing aircraft scheduled for delivery to China this year to proceed, according to Bloomberg. The report also noted that Boeing had already begun redirecting some of these aircraft to markets like India, Malaysia, and Saudi Arabia. A temporary reprieve or a turning point? While these policy shifts mark a notable thaw in US-China relations, the concessions come with a time limit. The reduced tariff rates and other eased measures are set to last only 90 days unless further progress is achieved. The Geneva talks have opened a window for negotiation, but experts caution that the deal is a temporary reprieve, not a permanent resolution. With geopolitical rivalry, domestic pressures, and industrial competition continuing to loom large, the next round of negotiations will be crucial in determining whether the world’s two largest economies can stabilise their fraught trade relationship—or fall back into economic confrontation.

US-China ease trade war: Washington cuts ‘de minimis’ tariff, Beijing lifts Boeing delivery ban

<p class="MsoNormal">A couple of days after proposing universal tariffs of 25 per cent on autos, drugs and pharma imports, US President Donald Trump hinted at a trade deal with China. <o:p></o:p>Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020.<o:p></o:p></p>
<p class="MsoNormal">However, as soon as he was in the white house, trump announced sweeping tariffs on foes and allies. And since then, has shown that he wants a deal and not a war. One can say he is getting a deal based on how things have turned out since his threats of import taxes. <o:p></o:p>India, for example, has given him some concessions and is rushing for a trade deal with the US before his reciprocal and other tariffs kick in. Trump's argument for trade levies is to lower the massive US trade deficit.&nbsp;<o:p></o:p></p>
<h2 class="MsoNormal"><strong>Beijing says 'tariff wars produce no winners'</strong><o:p></o:p></h2>
<p class="MsoNormal">While Beijing has retaliated with tit-for-tat tariffs on US imports in response to trump's hint of a China deal, Beijing said there are no winners in a trade war. That gives hope of a trade deal sooner rather than later. <o:p></o:p>Data shows that China has the largest trade surplus with the United States in goods&mdash;295.4 billion dollars in 2024. Separately, the European union has responded to trump's tariffs with a promise of similar taxes.<o:p></o:p></p>
<p class="MsoNormal">However, the EU trade chief has also signalled the bloc's willingness to negotiate a deal. Within the 27-nation EU, Germany has by far the largest trade surplus with the United States. <o:p></o:p>That is mainly because of the German automobile industry and chemical giants. Still, with trump using the zero-sum mentality more as a strategy, hopes for US trade deals with trading partners have risen.&nbsp;<o:p></o:p></p>
<p class="MsoNormal"><i>(With inputs from the agencies)<o:p></o:p></i></p>

Business & Economy: Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020.

A couple of days after proposing universal tariffs of 25 per cent on autos, drugs and pharma imports, US President Donald Trump hinted at a trade deal with China. Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020. However, as soon as he was in the white house, trump announced sweeping tariffs on foes and allies. And since then, has shown that he wants a deal and not a war. One can say he is getting a deal based on how things have turned out since his threats of import taxes. India, for example, has given him some concessions and is rushing for a trade deal with the US before his reciprocal and other tariffs kick in. Trump's argument for trade levies is to lower the massive US trade deficit. Beijing says 'tariff wars produce no winners' While Beijing has retaliated with tit-for-tat tariffs on US imports in response to trump's hint of a China deal, Beijing said there are no winners in a trade war. That gives hope of a trade deal sooner rather than later. Data shows that China has the largest trade surplus with the United States in goods—295.4 billion dollars in 2024. Separately, the European union has responded to trump's tariffs with a promise of similar taxes. However, the EU trade chief has also signalled the bloc's willingness to negotiate a deal. Within the 27-nation EU, Germany has by far the largest trade surplus with the United States. That is mainly because of the German automobile industry and chemical giants. Still, with trump using the zero-sum mentality more as a strategy, hopes for US trade deals with trading partners have risen. (With inputs from the agencies)

Trump floats another idea on trade, this time with China

<p>Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy. The deal didn't end the hundreds of billions of dollars of tariffs imposed by both the countries but some reliefs were provided to the Chinese.</p>

<p>The trade war first started when US President Donald Trump accused China of unfair trade practices and intellectual property theft. So, let's look at the key issues and see whether the phase 1 of this deal address them or not.</p>

<p><strong>Tariffs</strong></p>

<p>The good news for China is that the US agreed to reduce half of the total tariffs imposed on its goods in September 2019. However, both countries have not rolled back enormous tariffs imposed on each other's exports. This means Washington's tariffs on $360 billion Chinese goods and Beijing's $110 billion on US goods will continue. The US also agreed that it will not impose tariffs that were supposed to be put in place on December 15.</p>

<p><strong>Intellectual property</strong></p>

<p>China has long been accused of intellectual property theft even by the previous US administrations and was one of the main reasons for the confrontation. This truce deals with intellectual property issue as China has committed to protect trademark, patents and copyrights. China also vowed of stronger criminal and civil laws to punish intellectual property thefts and counterfeiting.</p>

<p>The deal also ensures that US-based pharmaceutical industries get more shields from China as far as patents are concerned.</p>

<p>American businesses have often complained of surrendering technology and trade secrets to China as a necessity to do business in the country. China pledged to eliminate any forced transfer of technology which includes removing pressures of licensing and administrative approvals.</p>

<p><strong>Purchase of American goods</strong></p>

<p>Through this deal, the US President wanted to push US exports to China which is significantly lower than Chinese exports to the US. China vowed that it will purchase $200 billion worth of goods from the US in the next two years. The list of purchase includes $32 billion of agricultural products, $52.4 billion of energy exports, $77.7 billion worth manufactured products and $37.9 billion of services.</p>

<p>China, however, claims that the buying will depend on the market demand and some analysts and experts are also sceptical whether American manufacturers and farmers can produce enough to meet Chinese demands.</p>

<p>China has also relaxed a number of health standards which earlier were used to prevent American imports. These changes will benefit US products, such as dairy, meat, seafood, poultry, among others.</p>

<p><strong>Subsidies and cybersecurity</strong></p>

<p>Trump has complained of China offering massive industrial subsidies to its domestic firms, making it difficult for American businesses to compete. These subsidies were especially granted to solar panel and steel industries. It was a major issue of conflict but the truce has no word on these subsidies.</p>

<p>The trade deal also doesn't comment on other concerning issues such as cybersecurity and Chinese control of cloud computing and data storage.</p>

<p><strong>Currency manipulations</strong></p>

<p>Ahead of signing of the first-phase deal, the US removed its currency manipulator tag from China. In the deal, China pledged that it will not manipulate its currency for gaining unfair trade advantage, a commitment the country made for years to G20 nations and are its obligations to the International Monetary Fund (IMF).</p>

<p>The US treasury earlier said that China has made “enforceable commitments to refrain from competitive devaluation” and said that it would publish relevant data on exchange rates and external balances.</p>

<p><strong>Access to financial services</strong></p>

<p>With the deal, the US says that its financial services companies have got a better access to Chinese markets. The deal binds China to address concerns of foreign equity limitations and discriminatory regulatory requirements.</p>

<p>Interestingly, China already started giving foreign financial companies more room from 2017. Also, US payment companies' entry in the Chinese market will not be easy as the market is majorly dominated by domestic firms.</p>

<p><strong>Dispute resolving mechanism</strong></p>

<p>The deal also says that future trade disputes be settled through bilateral consultations, which will initiate from working level and escalate to top-tier.</p>

<p>If bilateral engagement doesn't solve the differences, then the affected party can impose penalties or tariffs and the other country cannot in retaliation put more tariffs. In such an act of retaliation, any party can give written notice and the deal could be withdrawn.</p>


Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy.

Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy. The deal didn't end the hundreds of billions of dollars of tariffs imposed by both the countries but some reliefs were provided to the Chinese. The trade war first started when US President Donald Trump accused China of unfair trade practices and intellectual property theft. So, let's look at the key issues and see whether the phase 1 of this deal address them or not. Tariffs The good news for China is that the US agreed to reduce half of the total tariffs imposed on its goods in September 2019. However, both countries have not rolled back enormous tariffs imposed on each other's exports. This means Washington's tariffs on $360 billion Chinese goods and Beijing's $110 billion on US goods will continue. The US also agreed that it will not impose tariffs that were supposed to be put in place on December 15. Intellectual property China has long been accused of intellectual property theft even by the previous US administrations and was one of the main reasons for the confrontation. This truce deals with intellectual property issue as China has committed to protect trademark, patents and copyrights. China also vowed of stronger criminal and civil laws to punish intellectual property thefts and counterfeiting. The deal also ensures that US-based pharmaceutical industries get more shields from China as far as patents are concerned. American businesses have often complained of surrendering technology and trade secrets to China as a necessity to do business in the country. China pledged to eliminate any forced transfer of technology which includes removing pressures of licensing and administrative approvals. Purchase of American goods Through this deal, the US President wanted to push US exports to China which is significantly lower than Chinese exports to the US. China vowed that it will purchase $200 billion worth of goods from the US in the next two years. The list of purchase includes $32 billion of agricultural products, $52.4 billion of energy exports, $77.7 billion worth manufactured products and $37.9 billion of services. China, however, claims that the buying will depend on the market demand and some analysts and experts are also sceptical whether American manufacturers and farmers can produce enough to meet Chinese demands. China has also relaxed a number of health standards which earlier were used to prevent American imports. These changes will benefit US products, such as dairy, meat, seafood, poultry, among others. Subsidies and cybersecurity Trump has complained of China offering massive industrial subsidies to its domestic firms, making it difficult for American businesses to compete. These subsidies were especially granted to solar panel and steel industries. It was a major issue of conflict but the truce has no word on these subsidies. The trade deal also doesn't comment on other concerning issues such as cybersecurity and Chinese control of cloud computing and data storage. Currency manipulations Ahead of signing of the first-phase deal, the US removed its currency manipulator tag from China. In the deal, China pledged that it will not manipulate its currency for gaining unfair trade advantage, a commitment the country made for years to G20 nations and are its obligations to the International Monetary Fund (IMF). The US treasury earlier said that China has made “enforceable commitments to refrain from competitive devaluation” and said that it would publish relevant data on exchange rates and external balances. Access to financial services With the deal, the US says that its financial services companies have got a better access to Chinese markets. The deal binds China to address concerns of foreign equity limitations and discriminatory regulatory requirements. Interestingly, China already started giving foreign financial companies more room from 2017. Also, US payment companies' entry in the Chinese market will not be easy as the market is majorly dominated by domestic firms. Dispute resolving mechanism The deal also says that future trade disputes be settled through bilateral consultations, which will initiate from working level and escalate to top-tier. If bilateral engagement doesn't solve the differences, then the affected party can impose penalties or tariffs and the other country cannot in retaliation put more tariffs. In such an act of retaliation, any party can give written notice and the deal could be withdrawn.

US China trade deal: What were the key issues and are they resolved?