What’s Next After Trump’s Trade War Truce with China?
What’s Next After Trump’s Trade War Truce with China? President Donald Trump’s recent agreement to temporarily ease tariffs on Chinese goods has provided a brief moment of relief for global markets. But beneath the headlines, uncertainty continues to loom large — and the long-term economic consequences may already be unfolding. A Temporary Ceasefire in the U.S.-China Trade War Over the weekend, U.S. and Chinese negotiators met in Switzerland and reached a temporary deal The U.S. agreed to reduce tariffs on Chinese imports from 145% to 30%. China, in turn, lowered its retaliatory tariffs on U.S. goods from 125% to 10%. President Trump declared the agreement a victory and announced plans to speak with Chinese President Xi Jinping about maintaining stability in the economic relationship between the world’s two largest economies. Despite the de-escalation, tariffs remain significantly higher than when Trump first took office. Investors, CEOs, and consumers are now grappling with an uncertain outlook that complicates business decisions and discourages risk-taking. A New Tariff Baseline: 10% Is Here to Stay The current truce does not mark a return to pre-Trump trade policy. The