3 hours Ago
Trade Tensions Ease but Core Issues Remain
The trade war between the US and China has seen significant tariff hikes, with the US imposing a 145% levy on Chinese goods and China responding with 125% on US products. However, the new agreement will see these tariffs scaled back for a 90-day period—bringing US tariffs down to 30% and Chinese tariffs to 10%.
Despite the temporary relief, some measures remain in place. The US's 20% tariffs on China over fentanyl-related concerns, introduced earlier this year, will continue. In response, China will maintain its counter-tariffs and suspend or eliminate non-tariff measures it had implemented since April 2.
While the US government has celebrated the pause as a victory, Chinese officials and media consider the outcome a result of China's firm response and consistent countermeasures. A popular Chinese media outlet noted that China's stance had clearly impacted the US, pushing it toward a tariff reduction.
As other nations rushed to negotiate with the US after its April 2 call for "reciprocal tariffs," China chose to resist pressure and apply its own set of tariffs and measures, maintaining a firm diplomatic line.
Expanding Influence in Latin America
Even with the trade truce in place, Xi Jinping continued promoting China's global partnerships. At the China-CELAC Forum, he stressed the need to strengthen ties with Latin American and Caribbean nations. The Community of Latin American and Caribbean States (CELAC), formed in 2014, has served as a platform for China to expand its cooperation in a region traditionally within the US's sphere of influence.
Xi stated that China and CELAC countries, as part of the Global South, share a history of independence and a common goal of fairness and development. He expressed readiness to cooperate further amid growing global tensions and rising protectionism.
To support regional development, Xi announced 66 billion yuan (around $9.2 billion) in credit lines for CELAC member countries. The funding will be offered in Chinese yuan, in line with China's efforts to promote its currency internationally.
China's trade with Latin America exceeded $500 billion last year. Brazil, in particular, exported more than 73% of its soybeans to China, making the Asian nation its largest market.
Xi concluded by reinforcing China's stance as a defender of multilateralism, ready to join hands with its partners in Latin America and the Caribbean to pursue shared growth and stability.
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