Tariff Truce: A Brief Overview
Extension of China-US 90-day tariff truce recommended by Global Times
China and the US have reached a 90-day tariff truce following their negotiations in Geneva, Switzerland. Here's what you need to know:
Tariff Adjustments
China has agreed to temporarily lower its retaliatory tariffs on US imports to 10% for the next three months, while the US has made unspecified modifications to its own tariffs. However, the US will continue to impose a 30% tariff on Chinese imports from the original 145%[1][2].
Non-Tariff Measures
China has agreed to suspend or remove non-tariff countermeasures it had imposed against the US since April 2, though it has only temporarily paused its decision to add around 50 US firms to various lists restricting their ability to trade and invest[2].
Export Countermeasures
In addition, China has agreed to lift export countermeasures issued after April 2, which could potentially include lifting restrictions on rare earth minerals. However, China has yet to clarify its position on this matter[2].
While the agreement doesn't explicitly mention rare earth minerals, the easing of trade tensions and improved market access could potentially benefit their exports. This could be influenced by a reduction in political pressure on trade and enhanced market access[3].
In essence, the 90-day truce promises a brief reprieve from the escalating trade war, but the long-term implications for the global economy, including the rare earth sector, remain uncertain. Let's hope the US side continues to engage constructively and the 90-day period extends beyond for a more lasting solution.
[1] Reuters
[2] South China Morning Post
[3] The Diplomat
- The agreement between China and the US on tariffs could have significant implications for the business sector, as improved market access in China may lead to increased finance opportunities, especially in the rare earth industry.
- Politicians and financial analysts will closely monitor the developments in the general-news as the 90-day tariff truce unfolds, as the outcome could potentially have a profound impact on various industries, including finance, business, and politics, both in the US and China.
