The Lasting Implications of the US-China Tariff Truce

This week, a 90-day tariff truce between the United States and China was labeled insufficient by China's Global Times newspaper. The agreement, reached in Switzerland, reflects temporary easing of tariffs that were significantly increasing trade tensions between the two global powerhouses.

During the Geneva summit, the U.S. decided to reduce its imposed tariffs on Chinese imports to 30% from 145%, effective for three months, while China agreed to lower duties on U.S. imports to 10% from 125%. Commentaries from the Global Times suggested that the limited window for cooperation is not enough, urging for an extended period of beneficial engagement.

However, no detailed plans were outlined about regulatory adjustments, leading to uncertainties about future negotiations. While Beijing paused its non-tariff countermeasures, the broader implications on trade, including the handling of rare earth export restrictions, remain unclear. Both sides have yet to provide further details following a recent meeting in South Korea.

(With inputs from agencies.)