French media: The trade war, the US has realized it is not in a winning position

But reaching an agreement with China remains an unfinished task for Trump. He has already imposed double-digit tariffs on almost all countries, overturning the global trading system. China tested the limits of US trade policy, which centers on using tariffs as a weapon to force trading partners to make concessions. Beijing's response is a countermeasure, backed by its own weapons: cutting or slowing the supply of rare earth minerals and magnets - products widely used in everything from electric vehicles to jet engines.

In June this year, the two countries reached an agreement to ease tensions. The US said it would lift export restrictions on chip technology and ethane. China agreed to facilitate access for US companies to rare earths.

In May, the US and China avoided an economic disaster by reducing the high tariffs they imposed on each other's products. Previously, the tariffs on China reached as high as 145%, and those on the US reached as high as 125%. After demonstrating their ability to hurt each other, they have been negotiating ever since. Claire Reid, a senior legal counsel at Arnold & Porter law firm and former assistant to the US Trade Representative, said: "The US has realized it is not in a winning position."

Three-digit tariffs actually threatened trade between the US and China and triggered terrifying stock market sell-offs. At a meeting in Geneva in May, both sides agreed to make concessions and continue negotiations: the US tariff was reduced to still high 30%, and the Chinese tariff was reduced to 10%.

Ali Wyen, an expert on US-China relations at the International Crisis Group, told AFP: "The Trump administration overestimated its ability to prompt China to make economic concessions through high tariffs. This not only highlights the limitations of US unilateral influence but also gives Beijing reason to believe that by restricting rare earth exports, Beijing can indefinitely gain the upper hand in subsequent negotiations with Washington. The Trump administration hopes to ease trade relations due to the consequences of its previous arrogance."

Despite Trump's statements on his "Truth Social" network, clearly stating that all other aspects of the agreement "remain unchanged." In his executive order, he wrote: "China is continuing to take significant measures ... to address America's economic and national security concerns," and added that he had determined it was "necessary and appropriate" to maintain this truce agreement until November 10, 2025.

Other than the limited agreement, former assistant to the US Trade Representative Claire Reid does not expect more, such as China's statement that it will purchase more US soybeans and commit to taking more measures to prevent chemicals used in manufacturing fentanyl from flowing in, and allowing rare earth magnets to continue to flow in.

Source: rfi

Original: www.toutiao.com/article/1840305464442891/

Statement: This article represents the views of the author himself