The U.S. and China reach 90-day tariff truce

U.S.-China Tariff Truce and Its Implications

The recent temporary truce in U.S.-China tariffs, which reduces U.S. tariffs from 145% to 30% and Chinese tariffs from 125% to 10%, is a significant but cautious step in trade relations. While this reduction offers some relief, it still maintains higher tariffs than were previously in place, suggesting ongoing price increases for consumers and reduced profits for companies reliant on imports. Experts predict that the full impact of these tariff changes on consumer prices will unfold over the coming months, with early signs of increased costs appearing in sectors such as furniture. The uncertainty surrounding future negotiations leaves businesses and investors in a state of flux, indicating that a complete resolution of trade tensions is still uncertain despite this temporary agreement.