Agreements in the Trade Dispute
- Tariff Rates: The USA has reduced its tariffs on Chinese imports from 145 percent to 30 percent. China has lowered its tariffs on US imports from 125 percent to 10 percent.
- Duration of the Agreement: These tariff reductions will apply for an initial period of 90 days to allow for further negotiations.
- Consultation Mechanism: Both sides plan to establish a mechanism for regular consultations on economic and trade matters to resolve future disagreements through dialogue.
Effects on Financial Markets
The news of the temporary tariff reduction has positively influenced the stock exchanges. Stock prices have risen, indicating improved sentiment in the markets. For example, the stock price of the Danish shipping giant Maersk rose by about 10 percent in early trading. This development could also impact the European market, as a relaxation in the trade dispute between the two largest economies in the world could have positive effects on global trade and the world economy.
Long-term Perspectives
Although the current agreement is seen as a step in the right direction, it remains to be seen whether it will lead to a lasting resolution of the trade dispute. The establishment of a consultation mechanism could help avoid future conflicts and strengthen cooperation between the USA and China. However, the reactions of the financial markets indicate that there is hope for an end to the trade dispute and that investors are counting on improved economic collaboration between the two countries.