Now that commercial deals have been obtained with the European Union and Japan, the United States is looking to focus on China as the world’s largest economists are preparing for high -risk conversations.
The negotiations between Treasury Secretary Scott Beesen and the Chinese Deputy Prime Minister who was in life on Monday in Stockholm will begin.
This comes as a commercial truce between the two sides that is scheduled to end on August 12, although the deadline will be extended by 90 days.
The United States deals with Japan and the European Union can provide a plan for China. The European Union will invest $ 600 billion in the United States, buy $ 750 billion of US energy products and buy “huge amounts” of weapons, according to Trump.
It comes a week after a similar agreement with Japan, which has pledged to invest $ 550 billion in the main American industrial sectors. The European Union and Japan will face a 15 % tariff on most of its exports to the United States
BESSENT is the most prominent pledge of $ 550 billion as a major reason that the United States and Japan were able to settle on a tax that was less than 25 % that Trump threatened earlier.
“They got a 15 % average because they were ready to provide an innovative financing mechanism,” he said. Bloomberg TV On Wednesday, when asked if other countries could get a similar rate.
Likewise, Trump hinted that the European Union will have to “buy” a 30 % threatened tariff rate and referred to the Japan deal.
But conversations with Beijing may be more strict.
“When Japan collapsed and made a deal, the European Union did not have a great choice,” Jimmy Cox, the Harris Financial Group’s administrative partner, said in a note on Sunday. “The largest piece in the commercial deal puzzle is still standing, and the Chinese are unlikely to be ready to fold.”
Without a permanent agreement between the United States and China, the customs tariff can rise to prohibited high levels that will effectively cut trade. In April, Trump had set a tariff on China by 145 %, which prompted Beijing to take revenge on its 125 % tax.
Meanwhile, the United States reached deals elsewhere in Asia, where the Philippines and Indonesia face a 19 % tariff while Vietnam has 20 %. This also seeks Trump to inhibit the charging of Chinese goods across other countries in the region.
Any pledges to invest in the United States also come at a time when Trump’s tariff faces legal challenges, as a court hearing is scheduled to be held on Thursday on whether the president has authority under the International Economic Forces Law to impose large -scale duties.
On Sunday, European Commission President Ursula von der Lean confirmed that the $ 750 billion energy purchases in the United States will come during the next three years, which means that it will happen while Trump is in office.
But the American tariffs can be nullified before spending any money, and Wall Street doubts that Japan will fully make a goal that is not a binding commitment.
Piper Sandler’s analysts concluded that Trump’s tariff is illegal and noted that the Japanese investment of $ 550 billion comes with little concrete details.
They wrote: “Our commercial partners and major multinationals know that Trump’s tariff is on a fragile legal basis.” “Therefore, we find it difficult to believe that many of them will make huge investments in the United States, so they will not have done otherwise in response to the definitions that may not last.”
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