Wednesday 26 / June / 2024
Osaka: Ending their tiff regarding trade, both the United States and China have decided to resume trade talks amid a global economic slowdown.
The leaders of the two global economic superpowers, Donald Trump an Xi Jinping, reached an agreement on the sidelines of the G-20 summit at Osaka, Japan.
In a significant concession to smooth over ties, US President Donald Trump allowed US firms to continue selling to tech-giant Huawei.
Before the G-20 summit, Trump had threatened tariffs to the tune of $300 billion on Chinese imports.
However, post a meeting on the sidelines of the G-20 summit in Japan, Trump said that the US will not be imposing the additional tariffs and “he will be negotiating with China for the time being.”
At the press conference at the summit, the US president declared that US technology companies could again sell to China's Huawei - effectively reversing a ban imposed in May by the US commerce department.
This news comes a few days after US tech giant Apple decided to move the production of its MacBook Pro from the United States to China.
The resumption of talks and pressing the pause button on more tariffs will be seen in the short term as positive for markets and American businesses.
Those have already complained about the cost of further tariffs saying that if they had gone ahead - American consumers would have ended up paying something like $12 billion more in higher prices.
Chinese businesses have been suffering too - the trade war has hit investment plans, business confidence, and exports in the world's second largest economy.
