Since 2018, tariff war or trade war or export control is evolving into a bareknuckle choke war. This is very much like a street fight. The perceived stronger party initiated war. When it is not sufficient to achieve its goal, the perceived stronger party escalates. And this process continues in its own life. At certain point, if the perceived weaker party capitulates, then the perceived stronger party extracts what it wants and calls it a victory. The problem, to both parties and to third parties, is when the perceived weaker party hangs on and the perceived stronger party is exhausting its bullets. In other words, there comes sort of an equilibrium that the perceived stronger party never expected or imagined.
After this latest round of talks in London, there is no press briefings. It is said some "framework" was reached and the "deal" needs to be signed off by both presidents. The only facts are that, for the time being, US charges 55% import duty from China while China charges 10% import duty from US. Lutnick implies it is a US victory on TV interviews because 55% > 10%. China is silent.
It is eerily quiet to me with regard the outcome of this London meeting. Some rumors out of China said that, during the talks, China's top priority was not tariffs. China presented its own bargain in exchange of rare earth export control. So I guess "export control" is the name of the game right now. In other words, this "war" is evolving over the years and nobody knows what is the aim or what is the end.
After this latest round of talks in London, there is no press briefings. It is said some "framework" was reached and the "deal" needs to be signed off by both presidents. The only facts are that, for the time being, US charges 55% import duty from China while China charges 10% import duty from US. Lutnick implies it is a US victory on TV interviews because 55% > 10%. China is silent.
It is eerily quiet to me with regard the outcome of this London meeting. Some rumors out of China said that, during the talks, China's top priority was not tariffs. China presented its own bargain in exchange of rare earth export control. So I guess "export control" is the name of the game right now. In other words, this "war" is evolving over the years and nobody knows what is the aim or what is the end.
