American tariff deal: What does that mean?

The US and China have agreed with the truce to reduce import taxes on the goods traded between the two countries.

The agreement means a serious de -escalation of the trade war between the two largest economies of the world, which has directed strike waves affecting countless other countries, including in the UK.

That’s what everything means.

And in the US and in China confirmed the decrease in tariffs Earlier this year, they imposed each other after the initial escalation by President Donald Trump.

The deal stipulates that both countries cancel some tariffs and suspend others within 90 days, until May 14.

The result is that US rates on Chinese imports will drop to 145% to 30%, while Chinese tariffs for some US imports fall from 125% to 10%.

China also stopped and cut off others Non -Autheral countermeasuresFor example, exports of critical minerals to the US, which he created in response to the initial escalation.

US measures are still on -the -one, an additional 20% component aimed at Beijing pressure to make more to restrain the illegal Fentanyl trafficking, a powerful apioid drug.

The announcement occurred after the two countries held talks in Switzerland, the first between the two countries, as Trump caused the last tariff war.

Trying to predict the following steps in this long trade war between the US and China has been difficult to say over the past few months.

But this is the main agreement between the two power plants in the world and is widely welcomed.

Even if the canceled tariffs are restored in 90 days, since the vast majority of tariffs announced after the release were canceled, US tariffs for China will grow up to 54%, and Chinese tariffs in the US grow up to 34%.

However, negotiations between both governments will continue, so a further deal can be reached.

US Treasury Minister Scott Igent said the consensus of both countries was that “no side wants to resolve” and the Ministry of Commerce of China stated that the agreement became a step to “put the basis for overcoming differences and deepening cooperation”.

Thus, relations between the US and China sound more friendly, but as we have seen so far during this Trump’s presidency, everything can change quickly.

The word is a lot.

In 2024, the largest category of goods exported from the United States to China was soy – first of all, which was used for feeding, according to China, 440 million pigs. The US also sent pharmaceuticals and oil.

Meanwhile, China exported large volumes of electronics, computers and toys.

The largest category in US imports from China are smartphones that make up 9% of the total. The great proportion of these Apple iPhone smartphones made in China.

However, the US has been buying much more in China ($ 440 billion) than selling it ($ 145 billion) than Trump has long been dissatisfied.

Its reasoning is partly to introduce tariffs and higher countries in the countries that sell more than they buy-it’s to encourage US consumers to buy more goods in American production, increase taxes and increase production jobs.

The escalation trading war in recent months has led to the collapse of the amount of goods sent across the Pacific, but investors believe that the truce will lead to a rebound, with shares for one of the world’s largest firms in the world.

Politicians on both sides began and undoubtedly continue to demand the victory over this truce.

Despite the fact that the US and China call it a joint agreement, people in Beijing will interpret it as the Trump administration that goes back from the tariffs, according to Gianka Ortele, the director of the European Council for Foreign Relations program.

“We have returned to the square, the negotiations can now start. The result is uncertain, but China is now in a psychologically stronger position than before,” she said.

The United States will claim that its tariff rate on Chinese imports, albeit lower, are still hefty by 30%.

“This trading deal is a victory for the US, demonstrating the unmatched President Trump examination in the transactions that benefit the American people,” the White House said.

Economists in Deutsche Bank offered to reduce tariffs and Last week in the UK andIt means that Trump’s tariffs also have a “probable cap.”

“The UK has one of the least unbalanced relations with the United States and now has a universal rate of 10%. China has one of the most unbalanced relations and now has a 30%tariff rate,” said George Saravell, head of Fx Research at the investment bank.

“It is reasonable that these two numbers are now set the borders where US tariffs will end this year.”