U.S. President Donald Trump has signaled he will hold direct talks with his Chinese counterpart Xi Jinping this week. It comes after the U.S. and China reached a deal to slash tariffs for 90 days. China has not confirmed any talks between Trump and Xi.
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00:00Wall Street surges at open. The reprieve brought by a new deal between China and the
00:08United States to temporarily reduce tariffs. The two countries have been
00:13engaging in a tip-for-tat trade war since January, upping levies on products
00:17from each other's countries to over 100 percent. But US President Donald Trump
00:22is now describing their relationship as very good, saying he expects to speak
00:26directly with Chinese President Xi Jinping this week.
00:30We're not looking to hurt China. China was being hurt very badly.
00:33They were closing up factories. They were having a lot of unrest.
00:38And they were very happy to be able to do something with us.
00:41And the relationship is very, very good. I'll speak to President Xi maybe at the end of the week.
00:48Under the new agreement, both sides will cut tariffs by 115 percentage points,
00:53meaning that from Wednesday, US duties on Chinese goods will go from 145 percent to 30 percent,
01:00and Chinese tariffs on US goods will fall from 125 percent to 10 percent.
01:05It comes after senior Chinese and US officials held critical talks in Switzerland,
01:10their first face-to-face meeting since Trump returned to power.
01:13We do want trade. We want more balanced trade. And I think that both sides are committed to achieving that.
01:24China has not confirmed any plan for direct talks between Trump and Xi.
01:28But the tariff reset is being welcomed on the streets of Shanghai.
01:31What is the deal?
01:32First of all, this is a good news.
01:34It is a good news. At least the things are changing the best.
01:36Because it is, as long as we should consider,
01:38that the US always operating in the current trade trade for the U.S.
01:42for both sides are twofold. It is not a good source.
01:44It is not a good source.
01:44A bad trade trade is not expected to keep it continuing.
01:49Or it is really happening.
01:50And the other question is that if we have 90 days later,
01:55If it's going to be again, this will be a huge shift in the market for the market and uncertainty.
02:03Stock markets around the world had slumped at the start of the trade war between the world's two biggest economies,
02:08amid fears of a global recession and skyrocketing prices.
02:12But news of this latest truce saw markets gain.
02:15Where they were last week was absolutely apocalyptic.
02:20It would have resulted in supply chain disruptions that would have been something like the pandemic.
02:25There would have effectively been no trade between the United States and China.
02:29So a tariff of 30% is a high tariff, but it's a tariff that at least has a certain degree of flexibility
02:35and will allow life to go on, albeit at higher prices and maybe with greater uncertainty and delays.
02:45Analysts also predict the 90-day pause will become permanent.
02:49And as the two nations take the first steps towards getting their trade relationship back on track,
02:54there's hope for some stability after weeks of uncertainty.
02:58Alex Chen and Rosie Greninger for Taiwan Plus.