BBC Chinese Service reported today (May 12th): "[Latest News] The United States will reduce the tariff on Chinese goods from 145% to 30% within 90 days. China will also reduce the tariff on American goods from 125% to 10% within the same period."
[Clever Comment]: The US side retains 20% of the so-called 'fentanyl tariff' and 10% of the 'general tariff', suspends 24% of the reciprocal tariff for 90 days, and cancels 91% of the retaliatory tariff. In subsequent negotiations, there is room for consultation and adjustment regarding both the reciprocal tariff and the 'fentanyl tariff'. Relatively speaking, the adjustment of the 'fentanyl tariff' may be relatively easier. Within the next 90 days, this tariff adjustment measure is undoubtedly good news for Chinese enterprises exporting to the U.S., which can lower export costs to some extent and enhance product competitiveness in the U.S. market. However, the situation after 90 days remains highly uncertain, depending on further games between China and the U.S. in the trade field over the next 90 days. In a sense, these 90 days can be seen as a restart phase of Sino-U.S. trade relations, during which both sides will reassess, adjust, and explore new models of trade cooperation and balance points.
Original article: https://www.toutiao.com/article/1831900923231432/
Disclaimer: This article only represents the author's personal views.