The US and China have a deal to cut tariffs

The China-US Trade War: Confidence and Prospects for a Smoother Development of China’s Manufacturing and Consumption Economy

Is it possible that China is a huge manufacturing hub and the US is a consumption economy in the global economy? No, I don’t think so,” said Dmitry Grozoubinski, executive director of Geneva Trade Platform and a former Australian diplomat and trade negotiator. “But is there things the two sides can do for one another that would make both sides happy, at least a little bit? There is definitely a case for that.

The U.S. claims to be negotiating with China for it to purchase more American goods in line with the trade deals it brokered with China during the current trade war. China didn’t purchase the extra $200 billion in goods the U.S. said they would.

The European Union Chamber of Commerce in China is encouraged by the decision, but not sure about it. “Businesses need predictability to maintain normal operations and make investment decisions.”

The U.S. and China agreed to substantially reduce tariffs on each other’s products, after a meeting in Switzerland over the weekend, which added to the dramatic turn in the dispute that has wreaked havoc on financial markets.

“Neither side wants a decoupling,” said Bessent “We do want trade, we want more balanced trade, and I think both sides are committed to achieving that.”

The Chinese “came to deal this week,” said Greer, citing rapid progress between the two countries, which have also agreed to establish a consultation mechanism to continue addressing trade issues going forward.

The American levies on Chinese goods will drop from 145% to a base tax of 30% for an initial period of 90 days, while the Chinese levies will fall from 125% to 10%.

The talks were led on the Chinese side by Vice Premier He Lifeng and on the U.S. side by Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent.

Bessent explained at the press conference that they both have an interest in balanced trade. There was a path forward on the two countries working to address the problem of Fentanyl Smuggling.

“China has always pursuing win-win outcomes in its trade and economic negotiations, and therefore any possible deal to be reached will definitely by in the development interest of China’s own,” said Li Chenggang, a diplomat with China’s commerce ministry.

Vice Premier He described the atmosphere of the meeting as “candid, in-depth, and constructive” at a press conference following the meeting, saying it achieved “substantial progress and reached important consensus”.

The U.S. Port of Los Angeles and China Trade After the Decays of a Two-Loop Customs Duty Free Trade Agreement

The US and China announced a break from tariffs on each other after the market opened Monday, propelling the stock market sharply higher.

The pause comes after many businesses that rely on imports had halted deliveries to avoid paying a triple-digit tax. Cargo traffic at the Port of Los Angeles last week had fallen by more than a third from a year ago, raising the prospect of supply shortages in the near future.

Ross pulled two cargo containers off of ships in China after the 145% tariffs took effect. Now she’s scrambling to get as much merchandise to the U.S. as she can while the lower tariffs are in place.

Jay Foreman, whose company makes Tinker Toys, Lincoln Logs and other toys in China, got news of the deal at 4:30 am, and immediately called associates in Hong Kong to begin scheduling shipments.

“We didn’t want to put anything on containers with a 145% VAT, so we kept everything at the factories and the ports,” he says.

Some businesses may race to produce products early to avoid higher tariffs during the fall season. It is possible that the administration will lower tariffs at the end of the three-month window.

He is trying to get through the next four to six weeks. I’ll probably require three to four weeks to figure out how to get more produced and out of the door before the end of the 90 days.