The trade agreement between the U.S. and China temporarily reduces tariffs on each other’s goods, offering relief to global trade tensions.
The U.S. will lower tariffs on Chinese goods from 145% to 30% for 90 days, while China will cut tariffs on American imports from 125% to 10%.
This agreement is seen as a shift in U.S. President Trump’s hardline tariff approach, acknowledging China’s importance to the U.S. economy.
The U.S. trade deficit with China remains unresolved, and further talks will determine if the issue can be addressed or tensions will rise again.
For India, the U.S.-China deal brings uncertainties: if talks between the U.S. and China succeed, China could regain favor with investors, reducing India’s attractiveness for manufacturing.
India’s trade deficit with China continues to grow, and it depends heavily on Chinese imports, which will not be reduced by the U.S.-China deal.
India needs to focus on labor and land reforms to make manufacturing cost-effective and reduce reliance on Chinese imports.
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