Trump to speak with Xi as China announces retaliatory tariffs
Trump and Xi Jinping to Discuss Trade Amid New Tariffs
United States President Donald Trump is planning to speak with Chinese President Xi Jinping soon, according to Trump's top trade adviser, Peter Navarro. The exact timing of the call has not been disclosed by White House press secretary Karoline Leavitt.
In response to recent US trade measures, China has announced retaliatory tariffs on American goods. These include a 15% tariff on coal and liquefied natural gas (LNG) imports from the US, following the US decision to impose 10% tariffs on Chinese goods. Additionally, China will apply a 10% tariff on US imports such as crude oil, agricultural machinery, and large vehicles.
China's Ministry of Finance stated that these measures are a response to the US's unilateral tariff hike, which they claim violates World Trade Organization rules and disrupts economic cooperation. The tariffs are set to take effect on February 10, allowing time for potential negotiations between Trump and Xi.
Julien Chaisse, a professor at City University of Hong Kong, noted that China's actions are a calculated response, leaving room for negotiation. The outcome will depend on how the US interprets these measures. If seen as a negotiation opportunity, it could lead to discussions rather than further conflict.
Meanwhile, Mexico and Canada have agreed to a 30-day suspension of US tariffs after reaching an agreement with Trump. They will also send police to their US borders to combat drug trafficking and illegal migration. El Salvador's President Nayib Bukele has offered to take in US convicted criminals for a fee, aiming to make their prison system sustainable.
Doubts Revealed
Trump
Donald Trump was the President of the United States from 2017 to 2021. He is known for his business background and his focus on America-first policies.
Xi Jinping
Xi Jinping is the President of China. He is the leader of the Communist Party of China and has been in power since 2012.
Tariffs
Tariffs are taxes that a government puts on goods coming into the country. They make imported goods more expensive to encourage people to buy local products.
Retaliatory tariffs
Retaliatory tariffs are taxes imposed by a country in response to tariffs placed on their goods by another country. It's like a tit-for-tat action in trade disputes.
Coal and LNG
Coal is a type of fossil fuel used for energy, and LNG stands for Liquefied Natural Gas, which is natural gas cooled down to liquid form for easier storage and transport.
Negotiation
Negotiation is a discussion aimed at reaching an agreement. In this context, it means the US and China might talk to find a solution to their trade issues.
El Salvador
El Salvador is a small country in Central America. In this context, it is offering to take in US criminals for a fee, which is an unusual proposal in international relations.
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