Trump is negotiating with China on tariffs and trade

• Trump is trying to avoid raising tariffs on China until September 12.
• It is expected that the GDP of the USA will grow by 2.3% in the second quarter.
• The Federal Reserve System will announce its decision regarding the interest rates.

President of the USA Donald Trump continues to conduct negotiations with China, aiming to conclude an agreement that would allow avoiding the increase of tariffs scheduled for September 12. After signing a trade agreement with the European Union, which took place on July 27, negotiations with the Chinese side did not bring significant successes.

Trump has a choice: to continue negotiations or to resume trade war with China. According to assessments, the lack of progress in negotiations underscores China's strength and the importance of reaching an agreement for global trade.

On Wednesday, July 30, data on the gross domestic product (GDP), which may influence the assessment of the effectiveness of Trump's tariffs, will be published. It is expected that the GDP will grow by 2.3% in the second quarter, which may indicate the stability of the US economy ahead of challenges related to Trump's trade policy.

On the other hand, the Federal Reserve System of the USA will announce its decision regarding interest rates. Most investors believe that rates will remain unchanged, which indicates a cautious approach by the regulator to the impact of tariffs on inflation.

Additionally, on Thursday, there will be a hearing in the appellate court, which may raise questions about the legality of the tariffs imposed by Trump. This could be a serious blow to his trade strategy, which has already faced criticism from economists.

Tags: USA/China/Politics/Economy