China on Tuesday filed a complaint in the World Trade Organization to fight back against U.S. tariffs on steel and aluminum that President Trump imposed in March.
But that expected move came just hours after Chinese President Xi Jinping signaled he’s open to negotiating away the growing trade dispute between the U.S. and China.
In addition to steel and aluminum tariffs, Trump has threatened tariffs on up to $150 billion in Chinese goods over China’s theft of intellectual property rights, and other trade restrictions such as high tariffs on U.S. auto exports. In a nod to that complaint, Xi said he would “significantly lower” tariffs and keep opening China’s economy to the world.
That signal was enough to calm jittery U.S. equities markets Tuesday morning, which pointed to a healthy opening. But others noted that China has made similar pledges in the last few months, which means Xi was simply repeating promises he has already made.
To some, that pointed to the possibility that the U.S.-China trade skirmish would still linger.
“This speech did not represent a major shift in Chinese policy and it is likely the U.S.-China trade dispute will require more negotiation,” Chaoping Zhu of JPMorgan Assset Management told CNN.
Trump put pressure on China’s auto imports on Monday, by noting that China is permitted to keep high tariffs on U.S. autos, while the U.S. has just a minimal import charge on Chinese cars.
When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%. Does that sound like free or fair trade. No, it sounds like STUPID TRADE – going on for years!
— Donald J. Trump (@realDonaldTrump) April 9, 2018
