Opinion | US-China tariff truce offers hope for resolution on fentanyl and other issues
The Geneva talks made room for some potential wins on several points of contention but structural problems remain
Given the intricate and often contentious nature of their economic interdependence, the prospect of a sweeping agreement before the August deadline remains slim.
Though the US has scaled back its tariffs on Chinese goods from the prohibitive 145 per cent – effectively a trade embargo – the remaining cumulative tariffs hovering around 50 per cent still cast a long shadow over bilateral trade.
Nevertheless, there are reasons for cautious optimism. The truce signals that neither side is willing – nor prepared – to sever economic ties completely.
During my visit to Washington last week, I learned from the organiser of a closed-door discussion with business leaders that most expect tariffs on Chinese goods to either hold steady or decrease further once the 90-day period lapses.