Tariff Worth $300 Billion Awaits Over the G20 Summit
June 28, 2019 | Friday
The threat of President Donald Trump in imposing new tariffs on $300 billion in Chinese goods is lurking around the upcoming G20 summit of world leaders. During the summit, Trump plans to talk with President Xi Jinping to settle trade disputes.
On the second day, Saturday, of the two-day summit in Osaka, Japan, the two leaders will meet. Also, officials from both countries are trying to control the expectations ahead of the event. And they dismiss the chance of finishing the trade deal.
Adding to that, the two presidents both stand to benefit from a deal that averts the new tariffs off. However, hardliners and nationalists in Beijing and Washington are urging in the opposite direction. And they press further disconnection between the two countries, fired by concerns economic and military matters.
Also, some worries are escalating if Trump continues the tariff threat, he might destroy the possibility of a trade agreement.
On the other hand, the consequences of a failed trade deal of Trump and Xi can be tense. And some significant economists see a global recession as a result of a no deal. However, Trump is optimistic about the potential of the agreement.
The U.S. President stated, "It's possible we are going to make a deal."
More of Trade Talks
The trade dispute started in May, and Trump began to increase duties on Chinese goods. Then China retaliated by also ramping up the tariff on U.S. products.
Moreover, Trump is never quiet on his plans to add more tariffs on Chinese goods. And it can cover virtually all the country's remaining U.S. imports. According to Commerce Secretary Wilbur Ross last week, Trump is entirely delighted to proceed with his threat.
Furthermore, many investors desire that the meeting, if there won't be a deal, at least delay the new duties to come. But there is also a likelihood that the new tariff will take effect immediately. On the other hand, Treasury Secretary Stephen Mnuchin believes in progress on the U.S.-China trade talks.
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