The US and China agreed on a truce but their trade ties remain riddled with uncertainty

2 months ago 5

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The US and China agreed on a one-year truce, offering mutual concessions that would be reviewed annually. (@WhiteHouse X)

Summary

Does Trump have much to boast of after meeting Xi? America’s one-year truce with China seems to offer little cause for it. Relief for India from US sanctions over Chabahar, meanwhile, suggest an India-US trade deal may be nearer.

Thursday’s high-stakes meeting between US President Donald Trump and his Chinese counterpart Xi Jinping ended without the two leaders signing on a dotted line. But the two sides did agree on a one-year truce, offering mutual concessions that would be reviewed annually.

The US will lower its tariff on imports from China to 47% from 57% and hold off action against companies under Chinese equity control. Beijing has reportedly agreed to defer its clamps on rare-earth exports and promised to buy soybean from America.

To be sure, the details are hazy, with Trump sounding cheerful about a trade deal in the offing while Xi gave away little about what he made of the talks. Since the US president is given to overstating his wins, US claims often need to be discounted accordingly. That said, it’s clear that progress has been made, even if it’s now clear that discussions will drag on.

Meanwhile, India has got a six-month waiver from sanctions imposed by the US for its Chabahar Port partnership with Iran, according to New Delhi. This augurs well for the stormy India-US relationship. Hopefully, a trade breakthrough isn’t far. And Trump’s big play for a China deal may yet go awry.

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