U.S. and China cut tariffs on each other First in trade friction

The U.S. and China cut tariffs on each other.

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The United States and China will reduce some of the tariffs on their imports on the afternoon of Japan time on the afternoon of Japan Times, on the basis of an agreement in the first phase of trade negotiations. With two years of intense trade friction, tariff reduction is the first time.

Last month, the U.S. and Chinese governments signed a first-stage agreement during trade negotiations to help China increase imports of US agricultural products by more than $ 200 billion over the next two years and protect intellectual property rights. The work was included.

Based on this agreement, the United States halved the 15% tariff that had been added since September last year on $ 120 billion worth of LCD TVs, watches and furniture imported from China just after 2:00 pm Japan time on the 14th. Down to

In line with this, the Chinese government will cut in half the tariffs of up to 10% on 1717 items such as grapes and strawberries and fruits imported from the United States.

With two years of intense trade friction, tariff reduction is the first time.

However, the additional tariff measures that have been implemented by both countries remain largely.

Furthermore, if the economy slows further due to the spread of the new coronavirus, China may not be able to purchase agricultural products and other products as promised in the first phase of the agreement, and the conflict between the two countries will be resolved. It is unclear whether to proceed.

Concerns about implementation of agreement on spread of new virus infection

Last month, China pledged to signify the first phase of trade negotiations with the United States that promised a massive expansion of U.S. agricultural products.However, the spread of the new coronavirus threatened China's economy. If it gets cold, it may not be possible to make the promised purchase.

The first phase of the agreement between the United States and China states that China will increase imports of US agricultural products by more than $ 200 billion over the next two years.

However, in the first quarter from January to March, GDP = Gross Domestic Product growth rate of 4% in the first quarter from the effect of the spread of the new coronavirus, 2 points compared to the previous three months It is inevitable that the economy will slow down further, with some estimates that it will shrink.

White House officials this month 7 days, when Xi Jinping Jintao a meeting on the phone with Trump president, but You are shown the idea that ultimately the agreement of the first stage agreement defend, promised scale imports of Some observers say that expansion may be difficult.

Furthermore, in China, following the spread of the infection, there has been a strong opposition to the fact that the United States government has set the highest level of travel information in China for "stopping travel" in China.

President Trump is poised to begin negotiations promptly for a second-stage agreement, but the spread of the new coronavirus is unlikely to affect trade negotiations between the two countries.

Two years of US-China trade friction

Between the United States and China, the Trump administration, which regards the influx of Chinese products as an issue, imposed a 25% tariff on steel products in March, and since the trade friction has increased tariffs on a wide range of imports from each other. It became intense.

The United States repeatedly imposed tariffs on industrial products from China after July of that year, and China responded with retaliation duties.

Despite making progress at the summit and ministerial talks, the Chinese side disliked the need for the United States to reform its domestic system, including a review of the protection of state-owned enterprises by China, and the negotiations broke last May.

The United States will raise the tariffs already in effect.

The next month's summit meeting at the G20 Osaka Summit also progressed negotiations, but no agreement was reached again, and the United States imposed a 15% tariff on daily necessities imported from China in September. It has become even more serious.

The conflict between the world's No. 1 and No. 2 economies has hit companies in countries that have expanded their production, procurement, and sales worldwide, and has had a major impact on economies such as Europe, Japan and Southeast Asia.

A change in the negotiations between the two countries was seen last November. A year after the presidential election approaches President Trump's election, President Trump's ambitions to bolster the support of farmers overlap with the Chinese side, which wants to reduce friction with the United States in order to halt the economic slowdown. I started exploring.

As a result, President Trump and Deputy Prime Minister Liu He of China signed a first-stage agreement in Washington on March 15. We decided to reduce some of the tariffs, while leaving many conflicting issues.