CICOF - China Trade Progress: Market Booms On News, Who Will Benefit?

2025-05-12 13:45:00 ET

Summary

• The U.S. and China agreed to reduce tariffs on each other's goods for 90 days, boosting global equity markets and easing trade tensions.
• U.S. tariffs on Chinese imports will drop from 145% to 30%, while China will cut tariffs on U.S. goods from 125% to 10%.
• The tariff reductions are expected to lower input costs, alleviate supply chain pressures, and enhance cross-border commerce in key industries.
• Tariffs will still protect critical sectors like steel, medicines, and semiconductors, ensuring domestic industry stability and growth despite reciprocal tariffs.

100 days seems like years

Well, that was fast, or was it? Not to say that the trade war is completely over, but China is the big kahuna of the trade deals. Furthermore, the vagaries around the deal are still abundant as is typical, but the most important thing is that tariffs against China and Chinese tariffs against the U.S. have been effectively canceled for the time being [reduced significantly]. We are now in a 90 day "ceasefire" between the two countries....

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