What’s At Stake In The Trump-Xi Meeting?
This coming Saturday, Dec. 1, President Donald Trump and Chinese President Xi Jinping will meet on the sidelines of the G-20 meeting to discuss several matters, including the current trade standoff between the two counties.
As Bloomberg Government (subscription required) argued, “much hinges on the outcome” of the meeting. The website noted that, according to the International Monetary Fund, the current U.S. plan for 25 percent tariffs on $250 billion on Chinese exports would reduce China’s s 2019 gross domestic product by 0.6 percent and the United States’ by 0.15 percent. If the United States follows through on all its proposed tariffs, which total $505 billion in products, it would reduce Chinese GDP by 1.2 percent and U.S. GDP by 0.2 percent.
Additionally, going into the G-20 summit, the World Trade Organization (WTO) warned of increased protectionism, noting that between May and October of this year member countries have imposed tariffs on $481 billion in additional products. According to the nonpartisan Tax Foundation, the tariffs, both those that have already been imposed and those the Trump administration is threatening, could affect nearly 400,000 U.S. jobs.