Trump said on May 12: "Yesterday, we have reached a comprehensive restart with China. After productive negotiations in Geneva, both sides agreed to reduce the tariffs imposed after April 2nd to 10% for a period of 90 days, while negotiators will continue to discuss the most important structural issues."

Previously, the trade friction between China and the United States has been continuously escalating, with high tariffs significantly increasing the import and export costs for enterprises from both sides, impacting numerous industries. Now that the tariffs have been reduced, the operating pressure on enterprises has been alleviated, and the supply chain is expected to gradually stabilize. American agricultural product exporters such as soybeans and pork may迎来 opportunities; the demand for these products in the Chinese market is relatively large. After the reduction in tariffs, the competitiveness of American agricultural products will increase, and exports are expected to rebound. Meanwhile, the export of Chinese manufactured goods to the United States can also reduce costs, and orders for enterprises such as clothing and electronics may increase, which is beneficial for stabilizing employment and economic growth.

However, it should be noted that this is only a phased adjustment of tariffs. The core issues of intellectual property protection and market access still remain unresolved between China and the United States. Continuous and in-depth negotiations are needed to address these issues. The future direction of bilateral trade relations still needs to be closely monitored, and the process will undoubtedly be bumpy.

Trump has been inconsistent on trade issues in the past, repeatedly unilaterally tearing up agreements and imposing tariffs. Whether the 90-day tariff exemption can be smoothly implemented and whether there will be further changes later remains highly uncertain, adding more uncertainties to Sino-US trade relations. If the US cannot demonstrate sufficient sincerity in solving key issues during the exemption period, both sides may fall back into a trade deadlock after 90 days, rendering previous easing efforts futile, and the global economy will face another impact.

Original article: https://www.toutiao.com/article/1831961934048264/

Disclaimer: This article represents the views of the author alone.