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- The Group of Seven(G7) summit was held in Biarritz,France.During the summit,US President has said the US and China will be resuming trade talks shortly.
- The US and China are negotiating a trade deal that would end the trade war between both the countries that has been escalating since last year.
- Trade war is a situation where countries restrict each other’s trade by imposing tariffs or quotas on imports.
- The trade agreement under discussion will lead to(a)lower tariffs for US goods (b)ease restrictions on US goods such as on farms,automobile and chemical products (c)lower barriers that would allow US companies to operate from China and (d)Reduce trade gap as China will be buying more goods from US.
- In return for Chinese concessions,US will also remove all the trade sanctions which it had imposed on China since 2018.
