Trump: 'China, perhaps not surprisingly to some, has totally violated its agreement with us on tariffs'

Trump: 'China, perhaps not surprisingly to some, has totally violated its agreement with us on tariffs'

President Donald Trump has accused China of violating the terms of their recent trade agreement, stating that "China, perhaps not surprisingly to some, has totally violated its agreement with us on tariffs" [1]. This accusation comes amidst a pause in the ongoing US-China trade talks, which have been stalled since May [2]. The current tariff situation has significantly impacted small businesses, as seen with Bivo, a Vermont-based water bottle company, which has faced financial strain due to increased duties on their products [1].

In the latest development, the United States has temporarily reduced tariffs on Chinese imports from 30% to 145%, but this relief has been short-lived. The temporary reduction, which was seen as a positive sign by the stock market and economists, has not yet resolved the issues faced by small businesses like Bivo [1]. The company has had to rework its strategy and is now estimating sales to be 30% lower than previously expected, largely due to reduced demand from retailers navigating economic uncertainty [1].

The National Federation of Independent Business (NFIB) has also noted that millions of small businesses are at risk due to the trade shocks from tariffs. Small businesses often lack the financial reserves and market power to weather these economic problems, making them more vulnerable [1].

The trade war has not only affected businesses but also consumers in both countries, leading to higher prices for goods. The pause in trade talks has raised concerns about the stability of global markets. The US Treasury Secretary, Scott Bessent, has confirmed that talks are currently stalled and that more talks may happen in the next few weeks, with the possibility of a top-level meeting between President Trump and China’s President Xi Jinping [2].

While China has maintained its stance that US tariffs are unfair, it has expressed support for international trade rules and cooperation. However, the lack of progress in talks has left the future of the trade war uncertain. Small businesses like Bivo continue to feel the brunt of these trade tensions, highlighting the need for a more stable and predictable trade environment.

References:
[1] https://economictimes.indiatimes.com/small-biz/trade/exports/insights/trumps-china-tariffs-are-having-a-massive-impact-on-small-business/articleshow/121454949.cms
[2] https://dailytimes.com.pk/1308750/us-china-trade-war-pause-faces-new-challenges-talks-stall/