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Will the US and China reach a full trade deal soon?
Currently, both the US and China are working to extend their tariff truce, but a full trade deal is not guaranteed in the near future. Negotiations are ongoing, with both sides cautious about making firm commitments. While some officials suggest progress, others remain non-committal, indicating that significant hurdles still need to be overcome before a comprehensive agreement can be finalized.
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What are the main issues still being discussed?
Key issues include market access, overcapacity, intellectual property rights, and trade imbalance. Both countries want to address structural problems that have caused tensions, but disagreements over how to resolve these issues remain. The talks also focus on stabilizing trade relations and avoiding further escalation through tariffs or other measures.
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How could the tariff extension impact global markets?
The extension of the tariff truce provides temporary relief and stability for global markets, preventing immediate disruptions. However, uncertainty remains about the long-term outcome. If negotiations stall or break down, markets could react negatively, with potential declines in stocks, currency fluctuations, and shifts in international trade flows.
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Are there risks of escalation despite the truce?
Yes, despite the extension, risks of escalation still exist. Both sides are cautious and may revert to higher tariffs if negotiations fail or if strategic disagreements intensify. The underlying mistrust and strategic calculations mean that the situation remains fragile, and any misstep could lead to renewed tensions.
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What does this mean for global trade relations?
The ongoing US-China trade talks are a critical part of the broader global trade landscape. Progress or setbacks in these negotiations could influence other trade agreements and international relations. China’s efforts to expand trade ties in Latin America and Southeast Asia also play a role in shaping the future of global trade dynamics.