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China has won the trade war with Trump

China has won the trade war with Trump

Spectator12-05-2025
This weekend, the United States struck a deal with China that will see American tariffs on Beijing's exports come back down to manageable levels again, while China will lower its levies on imports from the US. The giant container ports on both sides of the Pacific can now be re-opened. The factories across China can get back to work, and Wal-Mart and Target can start placing orders again. The global economy can start moving once more – but significantly, it will very quickly become clear who has won the tariff war: China.
The deal that was announced this morning in Switzerland, where negotiations took place, by the US Treasury Secretary Scott Bessant appears very simple. The US will reduce its tariffs on Chinese imports from 145 per cent to 30 per cent, while China will cut its from 125 per cent to just 10 per cent. For now, it is just a 90-day pause, but it already looks likely that over the next three months a more permanent agreement will be worked out.
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