U.S. President Donald Trump and Chinese President Xi Jinping are set to meet at the G-20 summit in Japan next month. The leaders of the world’s two largest economies will likely aim to resolve their long-contentious trade dispute, but if they fail to reach an agreement, there’s a good chance Trump will follow through on his threat to place additional 25 percent tariffs on $300 billion worth of Chinese goods. According to a recent Citi report, additional tariffs on virtually all Chinese imports would be far worse than what consumers have seen so far, because the first round of tariffs focused mainly on capital goods, not goods consumers purchase directly. 

On May 17, the United States announced an agreement with Canada and Mexico to remove the Section 232 tariffs on Canadian and Mexican steel and aluminum imports and to remove all retaliatory tariffs imposed on American goods by those nations. In accordance with the agreement, all tariffs on these goods must be eliminated within two days.

As part of the agreement, the U.S. will terminate its World Trade Organization (WTO) litigation claim regarding Section 232 tariffs against Canada and Mexico, and in turn, Canada and Mexico will terminate their respective WTO claims against the U.S.