Article Title: US, China agree to temporarily roll back most tariffs for talks
13-05-2025
Economy Current Affairs Analysis
Context
• U.S. and Chinese officials said on Monday that they had reached a deal to roll back most of their recent tariffs and call a 90-day truce in their trade war to allow for more talks on resolving their trade disputes.
How it will impact India?
• Trade experts are divided on how the temporary trade agreement between the U.S. and China would affect India. • Former Director General of Foreign Trade Ajay Srivastava, however, pointed out that this deal in its current form does not address the underlying issues such as the high trade imbalance between the two countries, which was U.S. President Donald Trump’s main grouse in the first place.
• “As the tariff gap narrows, companies that had shifted production to places like Vietnam, India, or Mexico may return to China,” Mr. Srivastava said.
• Other trade economists say that lower tariffs between the U.S. and China could result in a reprieve from the ‘dumping’ of Chinese goods that countries like India and Vietnam have faced, and have sought to protect themselves against.
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