US-China trade talks: why Beijing unexpectedly emerged in a stronger position
A third round of US-China trade talks in Stockholm
ended on Tuesday with China announcing that both sides had agreed to extend their 'tariff truce' by another 90 days, while the US side insisted the deal was still pending US President Donald Trump's final approval.
That means, if nothing unexpected happens, the US will continue to impose 30 per cent additional tariffs on China after August 12, when the original truce is due to expire. The rate includes 20 per cent of duties Trump announced in the first quarter of the year, which were related to China's role in the fentanyl trade, and another 10 per cent levy imposed in April.
But in relative terms, China's tariff rate is starting to look less damaging, as the US moves to impose higher rates on a slew of major trading partners before an August 1 deadline set by Trump.
The gap between tariffs on China and various Southeast Asian nations is reducing fast
Amitendu Palit, researcher
'It is interesting that the gap between tariffs on China and various Southeast Asian nations is reducing fast,' said Amitendu Palit, senior research fellow at the Institute of South Asian Studies at the National University of Singapore.
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