High-level talks have started in London today between American and Chinese officials aimed at dialling down the trade tensions between the two largest economies in the world. If they result in a breakthrough, perhaps it will be known as the ‘London accord’. But can President Trump strike a ‘grand bargain’ with China? There is every chance that he might – which would give a huge boost to the global economy.
The talks in London follow on from a friendly chat on the phone between President Trump and his counterpart in Beijing, President Xi. Both sides have already stepped back from an all-out trade blockade, with the United States reducing the tariffs it imposes on Chinese goods from an extraordinary 145 per cent to a more manageable 30 per cent, while on the Chinese side, tariffs have come down from 125 per cent to just 10 per cent. The most important single trading relationship in the global economy is starting to get back on track.
For the moment, President Trump has only suspended the tariffs until August
Even so, the trade war has hit both sides very hard.
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