James Kynge

especially when you consider that total Chinese exports to the US last year was 525.6 billion US dollars.

So 7% of that is a very big number.

So that's the first thing.

US consumers are going to be able to buy Chinese stuff

at an average of 7% cheaper than they used to.

The second big thing, and you've also previewed this, is that this is likely to reduce the negotiating power of President Trump as he prepares to meet Xi Jinping in their summit at the end of this month and in early April.

This meeting, obviously, is of vital importance.

It's the first visit to China by a US leader

since 2017.

So we don't know at this stage whether Trump was planning on using the US tariffs on Chinese imports as a bargaining tool.

But if he was, then of course this weakens his position before he goes into that meeting.

And the third big thing is that it will effectively reduce pressure on China to pivot its economic model.

And this is where we get back to the IMF, the International Monetary Fund, because as you said last week, they came out with their annual report.

And as they do in almost all annual reports on China, they said that China needs to shift its

its economic model away from reliance on exports to boost consumer spending.

And here again, I think the context is absolutely crucial.

You might hear that and think, well, big deal.

They're just going to be boosting consumer spending and reducing their reliance on exports.

But because

China is such a huge economic presence in this world.