The US Secretary of Commerce, Howard Lutnick, said early Wednesday that the United States and China have reached a framework to implement the Geneva consensus, but will see if the US President Donald Trump approves.
Outstanding statements
We have reached a frame to implement the consensus of Geneva.
We combine the consensus of Geneva with the result of the call of the leaders of June 5.
Let’s go back and see if Trump approves it.
If approved, we will implement it.
He says the call between XI and Trump changed the result.
The idea behind all this is to increase our trade with China.
The frame is the first step, we had to eliminate negativity.
We hope that rare and magnets problems will be resolved in this.
When the licenses approve, then you should expect our exports implementation to come down again.
Market reaction
At the time of writing, the aud/USD is negotiating 0.09% higher at 0.6527.
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
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
