Big Take Asia Is the US-China Trade War Over?
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May 13, 2025 In this insightful discussion, Dan Flatley, a Bloomberg Treasury reporter, unpacks the recent US-China trade negotiations. He highlights a stunning reduction in tariffs and what it means for the global economy. Flatley dives into the factors fueling the new cordiality in talks and the cautious optimism it brings to Wall Street. The conversation also touches on the importance of ongoing dialogue amid political pressures and anticipates the potential challenges once the 90-day reprieve expires. Will this ‘total reset’ hold, or is uncertainty ahead?
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Significant Tariff Reduction Surprises
- The tariff reduction far exceeded expectations, dropping U.S. tariffs on Chinese goods from around 145% to about 30%.
- This unexpectedly large cut signals hope for a bigger deal and stabilized markets.
Diplomatic Tone at Geneva Talks
- The Geneva talks were held in neutral territory with a nonchalant approach to manage expectations.
- They emphasized respect, discreet negotiations, and establishing a continuous dialogue mechanism.
Beyond Tariffs: Rebalancing Trade
- Tariffs are just part of the issue; non-tariff barriers and market access are critical in trade talks.
- The US seeks a rebalancing of economic profiles with China opening markets and boosting domestic manufacturing.