US-Chinese tariff reconciliation offers temporary relief and very uncertainty

One tariff peace The United States and China, which announced Monday, will offer some flexibility, but also extends the type of economic uncertainty, which complicates enterprises to plan for the future.

From May 14, the United States, from 145% to 30% to 30% to 30% of Chinese imports, including 10% initial Levi and Fentanyl. China will reduce the 125% tariff to American goods to 10%.

However, proving that a long-term trade deal is difficult, a small amount of 30% tariff rate can cause price increase for consumers, experts told CBS Moneywatch.

“Tariffs in the United States and China may be seen to be satisfied with a trade agreement that can be preserved behind tariffs.” So far, England has reached an agreement with the United States, and it does not say much. “

30% tariff is permanent?

No, there is no official trade agreement, after the end of the end of the President Trump after 90 days, and Beijing will not revenge. US Treasury Secretary Scott Bessent called a new preliminary tariff “floor” in an interview Bloomberg control.

“This is a 90-day break, which allows the two countries to operate in the transaction,” Supply Chain Specialist Sina Gaysara, CBS Associate Professor at Robinson College of CBS Moneywatch.

30% tariff in Chinese imports is still high?

According to the agreement, the United States will reduce tariffs for Chinese goods to 145% to 30%. As soon as Mr. Trump’s office, Mr. Trump represents a steep hike in the United States in China in China.

If you look at where we will be the “pre-” Trump office, this “agreement”, this ‘agreement’, which is only one initial tariff, “he said. The barrier of tariffs On April 2.

Tariff rates are not the only potential adhesion points for the countries continue to negotiate.

“There are many many sizes of the two countries, so it is not only tariff rates,” he said. “Other trading barriers, trading imbalances and US currency manipulation are accused of porcelain, so there are many things to discuss.

What does the US-China peace mean to grow economic growth?

There is a good news here: if the tariffs for the reduction of both countries remain in place, it is likely to spend and increase consumer confidence. According to the Oxford economy associate professor Grace Zwemmer, it contains inflation and should help support the business market.

The announcement also reduces the bets of the US economy decline According to experts this year. The head of the Oxford Economy US Economist Ryan reduced its forecast for a sweet recession to more than 50% to 35%.

His rise from China starts to flow again?

The United States warned that both large and small enterprises will increase the consumption prices for high tariffs, and some companies canceled orders from China factories due to high payments.

“As Trump, Trump’s busiest shipping season and the holiday season,” Trend’s CBS Moneywatch reports to the barrel of imports in the busiest shipping season. “Companies have more announcements than companies that have to switch inventory and customer costs or to stop importing from China.

90-day cargo transportation is expected to increase during the 90-day tariff break, as companies collect their resources to protect the facilities and levies in trade talks. As a result, shipping prices will rise and squeeze small businesses that are finer.

“Currently, you will see a hurried in a hurry while trying to get it from China in this 90-day period.

Will consumer prices still rise?

Enterprises can be expected to spend 30% of the earth, probably some expenses for consumers. According to Georgia State University, the price increase in how the company’s tariffs can manage tariffs can be less important.

“If some companies are mixed with the tariffs well, we will not see extensive substantive inflation reaches the painful level. We can see pocket effects in various and special products and sectors,” he said.

Other professionals are a good news for Pause companies and consumers.

“Tariffs were punished so that it was also possible to create this promotion in order not to import anything from China,” said Veronique de Rugy, a senior researcher at the Mercatus Center at CBS Moneywatch. “The announcement is also good news because it will not be restrained as the supply.”

This does not mean that the United States is completely out of the forest. “It’s still a significant increase in taxes for American consumers. We are still in a worse condition than us,” he said.

How do companies react?

The enterprises still face significant economic uncertainty, complicate planning for the future.

“If you don’t know what small work and entries will cost next week or 90 days, it will be very difficult to do business in this uncertain environment,” Jacquez said.

BOGG’s founder and CEO of BOGG, which is a beach bag and accessory company in China, which has been producing at least some of the production, Trump management began to slide in Vietnam and Sri Lanka.

“We looked at the alternatives, and we were building suitable resources in both countries and we were working there,” said CBS Moneywatch.

Then came the announcement of the White House on Monday. At the beginning of this year, the country’s rated tariffs can be O46% and 44% together with Vietnamese and Sri Lanka, China and China can be the best choice of Vaccarella.

“Now we came back to one square, because 30% are cheaper to produce in China,” he said. “If the tariffs remain in 30% or falls down, this would be more acceptable to this current nightmare.”

Leading index Although the optimism of small business fell every month, although the November is above its own level before the presidential election.

Vaccarella warned customers that the price of the company’s bags could jump in early July. “But we can work 30%,” he said. “There may be a small increase, but it will not be 145%.”