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On Sunday (Feb. 24), U.S. President Donald Trump announced that the United States would hold off on imposing a 25% tariff on $200 billion worth of Chinese goods on March 1.
Global markets surged after the announcement. The Dow Jones jumped nearly 300 points in Monday's trading session while the Shanghai Stock Exchange surged a record 5%.
But the optimism is misplaced. Not only are Chinese goods still taxed, but the 25% tariffs are very much on the table as the trade war drags on.
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Tariffs Are Here to Stay
According to a tweet from the president, February's trade talks with the Chinese government have yielded "substantial progress" on "important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues."
While Chinese trade envoys have made minor progress in Washington, evidence suggests that it may be too late to keep this trade war from kicking into high gear.
In fact, according to President Trump's top trade negotiator, aggressive tariffs on Chinese goods are likely to be in play for years to come.
However, Robert Lighthizer, the nation's top trade negotiator, urged caution following the president's announcement. America's increasingly sour trade relationship with China is unlikely to turn a corner anytime soon.
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According to Lighthizer, trade relations between the two nations are "too serious" for a quick fix.
"The reality is this is a challenge that will go on for a long, long time," he told lawmakers on Wednesday.