Donald Trump hailed a “total reset” in relations between China and the US after the countries agreed a 90-day pause to the deepening trade war that has threatened to upend the global economy, with tariffs to be lowered by 115 percentage points. “We have all the cards,” the president claimed, using similar rhetoric to describe relations with the EU that he was using about China just weeks ago. The US trade representative, Jamieson Greer, said China’s retaliation had been disproportionate and amounted to an effective embargo on trade between the world’s two biggest economies. The fentanyl-related tariff will still apply, and Trump stressed that sector-specific US tariffs on cars, steel and aluminium will be unaffected. After the announcement of the US-China agreement, analysts at the Dutch bank ING lifted their forecast for China’s growth this year.

Source: The Guardian May 13, 2025 05:55 UTC