The United States and China have agreed to a 90-day suspension of most recent tariffs, signaling a temporary de-escalation in their ongoing trade dispute. This agreement, reached during talks in Geneva, aims to provide a window for further negotiations to address underlying trade issues.
Key Terms of the Agreement
- Tariff Reductions: The U.S. will lower its tariff on Chinese goods from 145% to 30%, while China will reduce its tariff on U.S. goods from 125% to 10%.
- Suspension of Additional Tariffs: Both countries have agreed to suspend or cancel 91% of the tariffs and halt an additional 24% for the 90-day period.
- Market Reactions: Global stock markets responded positively to the news, with major indices such as the S&P 500 and Nasdaq experiencing significant gains.
Concerns and Considerations
Despite the temporary suspension, the European Union Chamber of Commerce has expressed caution, highlighting the limited 90-day timeframe and the potential for tariffs to resume if no comprehensive agreement is reached. Analysts also note that high tariffs remain in place, and the long-term outcome of the negotiations remains uncertain.
Both nations have committed to continuing discussions on structural trade issues, including forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions, and cyber theft.
As the 90-day period progresses, stakeholders will be closely monitoring developments to assess the potential for a lasting resolution to the trade tensions between the world’s two largest economies.
Donald Trump and Xi Jinping exchanged a handshake at a Beijing press conference during the US president’s official visit to China in 2017. (EPA Images pic) Via FMT
