"Mr Trump's usual trade approach shout loudly and wave a big stick faltered when Beijing raised its own bludgeon. No tribute of gold crowns or Nobel nomination pledges were on offer from Mr Xi. The US president blinked first but, predictably, attempted to repackage the underwhelming result as a great success. In fact, it was a necessary de-escalation that essentially turned the clock back."
"Mr Trump who once announced tariffs of 145% on China agreed to cut the average rate to 45% and suspended the tightening of tech-related export controls. China has said that it will buy US soya beans and most importantly is holding off on draconian curbs to rare earth exports, which it threatened as a countermeasure. It's still unclear whether China will get access to Nvidia's powerful Blackwell chip. Experts say that would dramatically shrink the US advantage in AI, with obvious economic and security implications."
"This is a year-long deal and may be no more than a pause. Mr Trump's trade diplomacy is always erratic: last week, he announced that he would add 10% to tariffs on Canada in retaliation for a provincial political advert. The country's prime minister, Mark Carney, has just completed his own swing through Asia; Trumpism is forcing longstanding allies to look for alternatives."
Chinese and American leaders emerged from talks with contrasting public statements: the US president praised the meeting exuberantly while China reported a consensus and called for rapid follow-up. The meeting produced a de-escalation: the US reduced average proposed tariffs to about 45% and suspended tighter tech export controls, and China agreed to buy US soybeans and to refrain from imposing severe rare-earth export curbs. Access to Nvidia's Blackwell chip remains uncertain, with major implications for the US lead in AI. The arrangement is a year-long pause. Erratic US trade tactics are pushing allies toward alternatives and underline the need for stronger partnerships.
Read at www.theguardian.com
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