The Intelligence from The Economist
Duty falls: US and China reach a deal
May 12, 2025
Simon Cox, the China economics editor at The Economist, and Oliver Carroll, a foreign correspondent based in Kyiv, discuss significant shifts in US-China trade relations, focusing on a new 90-day tariff hiatus. They delve into the impact of this agreement on global economic dynamics and explore the complexities of ongoing Ukraine-Russia negotiations. Additionally, the conversation touches on how audio compression technology could detrimentally affect hearing, incorporating humor and intriguing studies along the way.
21:41
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Quick takeaways
- The recent US-China trade deal has significantly reduced tariffs, enhancing market optimism and potentially easing consumer prices within 90 days.
- Zelensky's call for peace talks with Putin amid ongoing conflict highlights the complexities of international diplomacy and the challenges in achieving a ceasefire.
Deep dives
Significant Trade Deal Impact
Recent negotiations between the United States and China have led to a substantial reduction in tariffs imposed by both countries, dropping reciprocal tariffs from as high as 125% to just 10%. This trade deal has sparked positive reactions in the markets, with investors forecasting economic stabilization as a result of the agreement. Analysts suggest that this shift may alleviate rising prices for consumers who had previously been affected by high tariff rates on imported goods. It remains to be seen if this deal will yield long-term benefits, especially given the short 90-day duration of the agreement.
