**US and China Agree to 90-Day Tariff Truce, Sparking Trade Surge and Market Rally**
The US and China have reached a temporary 90-day suspension of most tariffs following high-stakes negotiations in Geneva. The agreement, effective Wednesday, reduces China’s tariffs on US goods from 125% to 10% and lowers US tariffs on Chinese imports from 145% to 30%. However, certain tariffs, including those related to fentanyl and e-commerce exemptions for platforms like Temu and Shein, remain in place. The truce has already boosted market confidence, with major US stock indices—including the Nasdaq, S&P 500, and Dow Jones—rallying sharply on Monday. Experts suggest the deal signals mutual recognition of economic interdependence, though long-term challenges remain unresolved.
**Trade Expected to Surge as Businesses Rush to Capitalize on Lower Tariffs**
Analysts predict a short-term spike in US-China trade as companies accelerate shipments to avoid future tariff hikes. Flexport CEO Ryan Petersen reported a 35% jump in ocean freight bookings on the first day of the agreement, warning of potential shipping backlogs. Similar trends were seen in late 2023 when businesses frontloaded inventory ahead of anticipated tariffs. However, smaller firms may struggle with cash flow constraints, and rising demand could drive up shipping costs. While the 90-day window offers a reprieve, trade experts caution that negotiations will face hurdles, including US concerns over China’s industrial policies and intellectual property theft, while China seeks relief from US export controls and investment restrictions.
**Cautious Optimism Amid Economic Uncertainty**
Despite the market’s positive reaction, Federal Reserve Governor Adriana Kugler warned that remaining tariffs could still strain supply chains and consumer incomes. She noted that inflation remains above the Fed’s 2% target, and economic growth may slow compared to 2023. The temporary truce alleviates immediate tensions, but experts emphasize that deeper structural issues—such as China’s state subsidies and US trade restrictions—will require sustained dialogue. With both nations under political pressure to secure favorable terms, the next phase of negotiations will test whether this truce can evolve into a more stable trade framework.
Ez a cikk a Neural News AI (V1) verziójával készült.
Forrás: https://www.businessinsider.com/what-to-expect-us-china-trade-deal-next-90-days-2025-5.