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US and China discuss economic challenges as a swirl of tariff rollbacks

Hong Kong (CNN Business)The United States and China will meet on Monday to discuss the major challenges facing the global economy.SomeTrump era tariffscould be reducedto easeinflationand promotegrowth There is growing speculation.

According to a statement from the U.S. Treasury Department, U.S. Treasury Secretary Janet Jellen and China's Deputy Prime Minister Liu Hea (Beijing's Chief Economic Officer) have a "substantial conversation" over the phone. rice field.

Negotiations suggesting that readings from both sideswere initiated by the United States are described as "candid" andBloombergandAppears as. 24} Wall Street Journalreports that the Biden administration may raisetariffs on Chinese products sooner this week.

Chinese readings stated that the exchange was "constructive" and "practical." Both sides added that they had discussed "a view of the macroeconomic situation and the stability of the global industrial and supply chains."

Both sides agreed that the global economy is facing serious challenges and placed "great importance" on better policy coordination between China and the United States. , Added.

From the World Bank to Wall Street, there is growing concern about the risks of a global recession, and unseen inflation in decades has hit consumers in the United States and Europe. I am giving.

Meanwhile, China's economy has been hit by the country's zero-covid policy. Analysts are concerned that the Chinese economy may shrink in the second quarter and fail to meet the government's annual growth target of 5.5% in 2022.

The Chinese side also expressed concern about issues such as the lifting of additional tariffs and sanctions imposed by the United States on China and the fair treatment of Chinese companies, according to a Chinese statement.

Although US information does not mention tariffs or sanctions, Jellen said that the impact of Russia's war with Ukraine on the world economy and China's "unfair and unmarketable" "I have raised concerns," such as what is called the economy. training.

A call between two senior economic officials could be that Bloomberg would announce Monday and Byden this week "a rollback of some US tariffs on Chinese consumer goods." It will be done after reporting.

A report citing unnamed sources said the move was seen "as a way to counter accelerating inflation."

The Wall Street Journal also said on Monday that Byden could decide on customs duties in China this week, citing people familiar with the situation. The decision was "constrained by competing policy objectives: coping with inflation and maintaining economic pressure on Beijing."

The White House did not immediately respond to requests for comment.

"Timing makes sense," said HSBC Asian foreign exchange strategist Jingyang Chen, pointing to the fourth anniversary of former President Donald Trump's trade war with China.

On that day of 2018, US tariffs on$ 34 billion worth of imports from Chinacame into effect. Since then, tensions have risen dramatically and both sides have imposed sudden new tariffs on billions of dollars in each other's exports.
After months of negotiations, a trade suspension was signed in January 2020. However, bilateral relations remained tenseunder the Byden administration.

However, soaring inflation in the United States has fueled expectations that the government will ease some tariffs that help curb price increases.

US tariff cuts are "imminent," said Ken Chan, Asian Foreign Exchange Strategist at Water Treasure Bank, Tuesday.

He added that the Byden administration has a "strong political motive" to ease tariffs to reduce inflation before the November midterm elections.

— CNN's Beijing office contributed to this report.