#TradeWarEases

After the meetings between government representatives of China and the U.S. in Switzerland resulted in "substantial progress," more details of the agreements were revealed on Monday. The most important of these was the reduction of tariffs between the two nations for a period of 90 days. According to Reuters, the United States is suspending all tariffs imposed on China this year. This allows tariffs on that nation to decrease from 145% to 30%. Meanwhile, China announced an equivalent measure, lowering tariffs on American products entering its ports to 10% from 125%. Although this is a temporary period of 90 days, it clearly reflects an intention to ease tensions.

Treasury Secretary Scott Bessent stated that this agreement represents a stage in the process of decoupling the North American country from China. Some experts believe this is a utopia. The costs and labor shortages in the U.S. complicate that perspective, and investors are aware.