The trade war tension between US-China is getting reduced with the recent favorable decision taken by trump administration of reducing tariffs on Chinese goods and services. More than dozens of Chinese products and services which were taxed during the trade war has got relief from Trump administration. The government decided to close up tax norms on Chinese goods and services, which somehow ignited a trade war between the two countries. Multiple reports show this decision is taken by Trump administration after considering the upcoming election in the state.
Trump administration wants to get back on track when it comes to geopolitical situations, and that’s why they have decided to free up some Chinese goods from getting taxed further. The trade war between the two countries has reached a high level, which is creating lots of problems for both countries. Even though reports show that the US has a strong side in this tariff war still, big companies are losing millions of dollars because of it.
Big companies are requesting Trump administration to reduce the tariff rates, which are negatively affecting their businesses. Retail, manufacturing, agriculture are those sectors that have strongly affected because of this trade war issue. These sectors are major ones because, ultimately, consumer spending depends a lot on them, and many companies are getting into a situation where they are finding themselves hard to survive. Now to reduce such type of burden on companies, Trump administration has decided to let go of tariffs on Chinese goods. Many retailing and agricultural companies depend upon imports of Chinese goods, and they would get substantial relief from this decision. Since the economy is growing at a reasonable rate, the US will not suffer that much from this decision, and it might help Trump administration in the 2020 elections.