U.S.-China Weekend Trade Talks in Focus

All eyes on U.S.-China trade talks over the weekend

Highlights

• All eyes on U.S.-China trade talks over the weekend

• U.K. faces 10% baseline tariffs despite ally status

• Bond markets fixate on rising costs

• China diversifies exports, reducing reliance on the U.S. market

Key Takeaways

• U.K. Fails to Dodge Tariffs: There will still be baseline tariffs of 10% on U.K. goods — including car imports, which are now subject to a 10% tax. While this outcome is preferable to the previously threatened 25% tariff on cars, it still leaves companies, the economy, and trade worse off than at the year’s start. What’s more concerning is that the U.K., despite running a trade deficit with the U.S. and being a trusted ally, was unable to negotiate the 10% baseline tariffs away. That does not bode well for future negotiations with other trading partners.