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The U.S. and China announce a deal to cut tariffs, temporarily easing trade war

Sven
edited May 12 in Other Investing
American levies on Chinese goods will drop from at least 145% to a base levy of 30% for an initial period of 90 days, while Chinese levies are set to fall from at least 125% to 10% on American goods.

The talks were led on the Chinese side by Vice Premier He Lifeng and on the U.S. side by Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent.
https://npr.org/2025/05/12/nx-s1-5395027/us-china-tariffs-deal-trade-war-beijing-washington

There is details to work out, and there were lesson should be learned from 2020.
The U.S. says it is now negotiating for China to purchase more American goods, a throwback to a trade deal the Trump administration negotiated with China during another trade war in 2020. However, China ended up purchasing none of the additional $200 billion in goods that the U.S. said they would.
Future market is up strongly on Monday, May 12th.
https://finviz.com/futures.ashx

Comments

  • yogibearbullyogibearbull
    There are now 2 models of US trade deals - when the US has trade surplus (US-UK trade deal) & when the US has trade deficit (US-China trade deal; tentative). Other trade deals, including US-India, US-Japan, US-Korea, etc should follow soon.
  • Sven
    Having the right team to negotiate makes a big difference. Noted that Navarro and Luttnick are not part of the team. Important point is to get the agreement to stick this time.
  • Sven
    edited May 12
    Duplicated post.
  • yogibearbullyogibearbull
    edited May 12
    Yes, Bessent is in a different group than Musk-Lutnick-Navarro.

    Moreover, Bessent just got through dumping the IRS Head that the Musk's group had secretly slipped in.
    https://www.nbcnews.com/politics/politics-news/trump-replacing-acting-irs-commissioner-rcna201907
  • rforno

    Agree this seems like a more competent approach/team. However, in my view, this only gives breathingroom --- it still just punts things 90 days down the road .... we could be right back where we started from in August or at anytime that Emperor Hirocheeto doesn't get his way on something with China.

    I'm sure they'll spin today's news as a 'yuuuuge' victory for the country, but imo it really isn't.
  • Observant1
    "I'm sure they'll spin today's news as a 'yuuuuge' victory for the country, but imo it really isn't."

    +1
  • MarkMark
    What! You were looking for some lettuce on your Nothing Burger?
  • rforno
    Mark said:

    What! You were looking for some lettuce on your Nothing Burger?

    Yes, because "bacon is too expensive" and it's hard to find organic free-range covfefe to layer on top of my NothingBerder....
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