The White House considers to reduce tariffs to China to display the commercial war – Wall Street Journal

The Wall Street Journal reported Wednesday that The White House was considering reducing tariffs on Chinese goods to descale the commercial conflictaccording to Reuters.

Citing a senior White House official, the media said that tariffs on China imports They would probably go down to approximately 50% and 65%.

Market reaction

The main Wall Street indices charge bullish impulse after this headline. At the time of publication, the S&P 500 index rose almost 3% in the day and Nasdaq Composite was rising 3.5%. Meanwhile, the dollar index recovers from the minimums of the session and was last losing 0.4% in the day to 99.25.

Commercial War between the US and China Faqs

In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.

An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.

Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.

Source: Fx Street

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