USA and China agree 90-day break in the trade war-Diepresse.com
According to US finance minister Scott Bessent, the United States and China have agreed a 90-day break in the trade war of the past few months. Chinese stocks jump up.
There is a stage success in the customs dispute between the USA and China. According to US finance minister Scott Bessent, both countries have agreed a 90-day break in the trade war. Both sides also explained that they will temporarily lower the tariffs on the other country’s products, which gives the two largest economies in the world more time to settle their differences. As Besser said in front of journalists in Geneva on Monday, the mutual tariffs would be reduced to 115 percent each. This would still make them significantly higher than before the re-entry of US President Donald Trump into the White House.
The Republican had recently covered almost all important trading partners with special tariffs. He wants to reduce the huge trade deficit of the United States. So far, there has only been a real agreement in the customs dispute against numerous countries that have been started by US President Donald Trump. The agreement was reached last Thursday, whereby many details still have to be negotiated.
In any case, Chinese stocks that are noted in Hong Kong increased the news of Monday. The Hang-Seng-China-Enterprises index and the Hang-Seng-Benchmark index from Hong Kong extended their profits to 3.6 percent after the two countries had published a joint statement in which the step was announced. The CSI 300 index on land made 1.2 percent higher on Monday and now made up for the losses that it had suffered after the United States imposed high tariffs against its most important trading partners on April 2.
« The 90-day break should be relieved for China’s export sector because the United States and China are working on long-term structural changes, » said Marvin Chen, strategist at Bloomberg Intelligence.
« Since the worst is over, every further relaxation of the trade voltages will give Chinese stocks buoyancy, » said Francis Tan, Asia chief strategist at Indosuez Wealth Management.
The general prospects for the Chinese stock market are positive, whereby domestic politics will probably be the real consumption and the mood for further increases this year and beyond, according to Tan. (Reuters/Bloomberg/Est)
