US-China Business Council Chairman Sean Stein has said that the stock market does not expect a big return from the Stockholm talks.
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On Monday, high economic officials of the United States of America and China held a discussion about this while bringing the tax policy of American President Donald Trump to be implemented from August 1 to the world.
It is said that the talks between the world's top two economies in Stockholm, the capital of Sweden, will last for two days. Other countries are also rushing to finalize the tax agreement with the US, which signed a new agreement with the EU on Monday. A successful deal in the coming days will mean a lot to dozens of trading partners as the US has already said it will impose new and steeper tariffs if a deal is not reached by August 1.
Even partners like Brazil and India are likely to increase the tax rate on US imports from the 'basic' rate of 10 percent to 50 percent . According to data from Yale University's Budget Lab Research Center, the Trump administration's tariffs have raised tariffs on US imports to levels not seen since the 1930s. When the delegation including US Finance Minister Scott Besant met with the Chinese team led by Vice Premier He Lifeng in Sweden, all eyes were focused on the talks between Washington and Beijing.
In April, the tariff war was expected to escalate after both countries raised taxes on each other's products one after the other up to triple digits. But later, after the United States temporarily reduced the tax to 30 percent, China also symbolically reduced it to 10 percent. But the 90-day ceasefire, which started after the talks in Geneva last May, is ending on August 12. After the Geneva meeting, both sides held a meeting in London to resolve the differences.
Emily Benson, head of strategy at Minerva Technology Futures, said, "Especially after the London talks, there seems to be a very significant change in the US administration's thinking about China." Finance Minister Bensant said that although there was no concrete agreement from the talks with China, both countries have agreed to resume the flow of some rare minerals and semiconductors.
Benson has also signaled concrete results toward extending the 90-day tax hike moratorium. The South China Morning Post, citing sources on both sides, said Washington and Beijing are expected to agree to hold off on tax increases for another 90 days. Trump has announced that an agreement has been reached with the EU, Britain, Vietnam, Japan, Indonesia and the Philippines. Thibault Denamiel, a member of the Center for Strategic and International Studies, said, "The renegotiation of the tax agreement between the United States and China shows that both sides are serious about solving the problem." He said, "The business community is more optimistic about the outcome of the meeting between the two presidents in Beijing at the end of this year than the talks between the current economic officials."
