Tariff negotiations ended, China and the United States announced the results of the talks, and mentioned five words at the same time!

After the China-US tariff negotiations ended, China summarized the results in three words, and the US side's statement was highly consistent. After reaching a consensus, will the United States reduce tariffs on China?

On May 11, local time, the China-US tariff negotiations in Geneva, Switzerland ended. At the press conference, the Chinese representative summarized the results of the talks with three words: frank, in-depth and constructive, emphasizing that the two sides have made substantial progress and reached important consensus. U.S. Treasury Secretary Benson and President Trump's statements were highly consistent. Benson also mentioned the five words "substantial progress" and said that China and the United States will soon issue a joint statement. According to the latest news, the progress made by the two sides is to establish a consultation mechanism, clarify the leaders of both sides, and continue to communicate on issues of concern to each other. Before the talks, China reiterated its position many times, saying that the door is open for talks and fighting, and it will accompany to the end, and asked the United States to correct its wrong policies and talk to China with sincerity. Judging from the signals released by China after the talks, the US side probably gave in, otherwise China would not be interested in continuing the negotiations.

There are no winners in a trade war, only the size of the losses is different. This should be the biggest consensus between China and the US. Since the tariff increase on China, the US financial market, consumer market, industrial production and even the political circles have been shaken. The pressure on the Trump administration is not ordinary. If the tariff war continues, the United States is likely to be in chaos.

As the two largest economies in the world, the impact of the Sino-US trade war has spread to the world, and it is a reshaping of the global supply chain and industrial chain. It can be said that all sectors of Chinese and American society do not want to fight a tariff war, and reaching a consensus is the expectation of all sectors.

As expected, after China and the United States announced the results of the talks, the offshore RMB exchange rate against the US dollar rose to 160, and the three major US stock index futures rose by more than 1%, including Nasdaq futures up 1.5%, S&P 500 futures up 1.4%, and Dow futures up 1.2%.

It should be noted that China and the United States still have a long way to go before the end of the tariff war. The establishment of a consultation mechanism does not mean a reduction in tariffs, but only the start of negotiations. However, with a consensus, there is a motivation to continue the talks. The next focus is how to gradually return the tariff rate to normal levels. On the other hand, progress in negotiations with China does not mean the end of Trump's "global tariff policy". Recently, the United States and the United Kingdom reached an agreement to exchange a 10% "basic tariff rate" for the United Kingdom to eliminate trade barriers to the United States and increase imports of American goods. Next is India, which is seeking tariff exemptions from the United States and plans to reduce tariffs on 90% of American goods. Recently, Trump has said that he will increase trade cooperation with India in the future.

Trump used the method of making cards out of thin air to pull out a tariff table at will, forcing countries such as Britain and India to make concessions to the United States. The cost was almost zero, but he reaped real economic benefits. This is a typical hegemonic approach. China's approach should be thought-provoking. In the face of national interests, it is not advisable to simply give in and make concessions. Only by adhering to principles and taking decisive countermeasures can we win the respect of our opponents and curb tariff blackmail. For other countries, once there is a first time, there will be countless times. The US's "tariff card" will not end. It is necessary to prepare in advance and reduce dependence on the US market.