WASHINGTON — President Trump on Monday announced an agreement with China to temporarily slash tariffs for 90 days as the two countries say they plan more talks on resolving trade disputes.
Iowa Senator Chuck Grassley says it’s good news. “I think it means that China realizes that they sell probably three times to us what we sell to them. We’re a major market for them and they are losing that business, and it’s hurting their economy. President XI is nervous about unemployment in his country.”
Grassley says Chinese President Xi is likely looking for a positive answer to calm any potential unrest against him. “He doesn’t want that to happen, and I think he’s waking up to the fact that President Trump has leveraged over him and he wants to get this settled fast so he has peace and harmony in his own society and keeps his economy growing.”
Under the 90-day truce, the US has agreed to drop its 145% tariff rate on Chinese goods to 30%, with China agreeing to lower its 125% rate on US goods to 10%.
