Big Take Is the US-China Trade War Over?
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May 12, 2025 Bloomberg Treasury reporter Dan Flatley joins the discussion on a groundbreaking trade development between the US and China, highlighting a dramatic reduction in tariffs. This shift signals potential cooperation but raises questions about what happens when the 90-day reprieve ends. Flatley shares insights on unresolved issues like national security and supply chain concerns, while examining how upcoming global events might shape future negotiations. He emphasizes the precarious balance of international relations affecting world markets.
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Tariff Cuts Mark Trade Reset
- The U.S. and China greatly reduced tariffs: U.S. tariffs dropped from 145% to 30%, China's from 125% to 10%.
- The deal implies a "total reset" and a framework for continued dialogue, easing trade tensions.
Beyond Tariffs: Trade Rebalancing
- The trade agreement aims for more than tariff cuts, targeting removal of non-tariff barriers and market rebalancing.
- U.S. seeks China to open markets and balance towards consumption, while boosting U.S. manufacturing production.
Supply Chain Fears Drive Talks
- Supply chain disruptions and concerns about critical minerals pushed both countries to negotiate.
- The U.S. fears empty shelves and rare earth mineral issues; China worries about companies like Apple leaving.