US tariff deal: What does that mean?

The United States and China have approved a truce to reduce import taxes on the goods that are traded between the two countries.

The agreement represents a great attachment to the trade war between the largest economists in the world, which has sent shock waves affecting countless countries, including the United Kingdom.

This is what everything means.

Both the United States and China have He confirmed a decrease in definitions They imposed on each other after the initial escalation of President Donald Trump earlier this year.

The deal includes both countries to completely cancel some definitions and suspend others for 90 days, by May 14.

The result is that the American definitions of Chinese imports will decrease to 145 % to 30 %, while Chinese definitions on some American imports will decrease from 125 % to 10 %.

China also stopped and touched others Non -transmitted anti -measuresLike the export of critical minerals to the United States, which put it in place in response to the initial escalation.

American measures still include an additional 20 % component aimed at pressing Beijing to do more to reduce illegal trade in fentanel, which is a strong opium.

This announcement came after the two countries had talks in Switzerland, the first between the two countries since Trump ignited the latest introductory war.

It has been difficult to define the next steps in this continuous trade war between the United States and China over the past few months.

But this is a major agreement between the world’s power economies and welcomed on a large scale.

Even if the outstanding tariffs are repeated after 90 days, because the vast majority of the definitions announced after the liberation day have been canceled, the American definitions in China will rise to only 54 % and the Chinese definitions on the United States rise to 34 %.

However, the talks between the two governments will continue, so another deal may be concluded.

US Treasury Secretary Scott Payett said that the consensus of both countries is that “none of the parties want a detailed chapter,” while the China Ministry of Trade said that the agreement was a step “to clarify the basis for filling differences and deepening cooperation.”

So relations between the United States and China seem more friendly, but as we have seen so far during this Trump presidency, things can change quickly.

In a word – a lot.

In 2024, the largest category of goods exported from the United States to China was soybeans – which are used primarily to feed the estimated pigs of 440 million pigs in China. The United States also sent medicines and oil.

Meanwhile, China has exported large quantities of electronics, computers and games.

The largest category of American imports from China is smartphones, which represents 9 % of the total. A large percentage of these smartphones iPhone Apple devices made in China.

However, the United States buys much more than China ($ 440 billion) more than it sells ($ 145 billion), something that Trump has not been not satisfied for a long time.

Its part is partially to introduce customs tariffs, and to increase in countries that sell more than the United States than you buy, is to encourage American consumers to buy more US -made goods, increase the amount of taxes that are raised and increase manufacturing functions.

In recent months, the trade war has led to a collapse in the amount of goods shipped across the Pacific, but investors believe that the truce will lead to a recovery, with shares of some of the largest shipping companies in the world.

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

Although the United States and China call it a joint agreement, people in Beijing will explain it as the Trump administration running from the definitions, according to the Janka Ertel, the director of the Asia program at the European Council for Foreign Relations.

“We went back to the first box, and negotiation now can start. The result is unconfirmed, but China is in a stronger psychological position now than before,” she said.

The United States will argue that the customs tariff rate on Chinese imports, despite its decrease, is still 30 % high.

“This commercial deal is a victory for the United States, which indicates the unparalleled experience of President Trump in securing the deals that benefit the American people,” a White House statement said.

Economists UK and United States deal last week on themIt means that there is a “potential and floor cover” for Trump rates.

“The UK has one of the least unpopular relations with the United States and has now a 10 % global tariff. China has one of the most unprecedented relations and now has a 30 % tariff,” said George Saravilus, President of FX Research at the Investment Bank.

“It is reasonable that these two numbers now end the boundaries that the American definitions will end this year.”