Customs Dispute between USA and China Resolved
The recent agreement in the customs dispute between the USA and China has significant positive effects on global markets, particularly the New York stock exchanges. This development has the potential to also influence European markets, which is of great importance to private investors and small shareholders.
Agreement in the Customs Dispute
The USA and China have reached a tentative agreement in Geneva to reduce mutual tariffs. The USA will lower its tariffs on Chinese imports from 145 percent to 30 percent, while China will reduce its tariffs on US imports from 125 percent to 10 percent. This reduction will be in effect for a period of 90 days starting from May 14.
Impact on the Markets
This agreement has led to a positive sentiment in the markets, particularly at the New York stock exchanges. The reduction in tariffs could lead to an increase in trade volume and a stabilization of global supply chains, which in turn could stimulate economic activity. Private investors and small shareholders benefit from this development as they can invest in stable and growing markets.
Impact on European Markets
The positive effects on the New York stock exchanges could also extend to European markets. A stabilization of global trade could contribute to a recovery of the European economy, as many European companies are closely connected to the US and Chinese markets. This could lead to an increase in investments and improvements in economic prospects in Europe.
Long-term Perspectives
Although the current agreement is only tentative, it indicates a possible long-term solution to the trade conflict. US President Donald Trump speaks of a “complete restart” with China and does not expect the tariffs to be raised again after the 90-day pause. A permanent solution could lead to a sustainable stabilization of global markets and provide investors with more security.
Overall, the agreement in the customs dispute between the USA and China has the potential to positively influence global markets and favor private investors as well as small shareholders. The development of European markets will closely depend on further developments in this conflict.