Background of the Agreement
The USA and China have come to an agreement after intensive negotiations in Switzerland to temporarily reduce tariffs. This measure is part of a larger trade dispute that has escalated in recent years. In April 2025, the USA had increased tariffs on Chinese imports to a total of 145%, while China imposed tariffs of 125% on US imports.
Details of the Agreement
- Reduction of Tariffs: The USA will lower tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on US imports from 125% to 10%.
- Duration: This reduction is valid for 90 days, which is considered a temporary solution to ease the trade dispute.
Impact on the Markets
Positive Effects for the Markets
- Stabilization of Trade Relations: A temporary suspension of tariffs could lead to a stabilization of trade relations between the USA and China, which in turn could positively influence global trade dynamics.
- Stock Markets: This development could positively affect the stock markets as investors hope for a relaxation of trade tensions. A stabilization of trade relations could lead to a recovery of the markets, especially in industries that are heavily trade-dependent.
Risks and Opportunities for Investors
- Risks: Despite the positive effects, the temporary nature of the agreement carries risks. If the tariffs are raised again after the 90 days, this could lead to renewed market volatility.
- Opportunities: Investors could benefit from the temporary relaxation by investing in sectors that benefit from the reduced tariffs. This could particularly apply to companies that are heavily dependent on trade between the USA and China.
Outlook
The temporary suspension of tariffs between the USA and China is an important step towards easing the trade dispute. Although it may have short-term positive effects on the markets, the long-term development remains uncertain. Investors should continue to monitor the situation closely to respond to potential changes.