Background of the Agreement
The recent tariff agreement between the USA and China has significant impacts on global markets, particularly on the New York Stock Exchange. This agreement is the result of discussions that took place over the weekend in Geneva and marks a significant step in the trade dispute between the two largest economies in the world.
The USA and China have agreed to lower their mutual tariffs for a period of 90 days. The USA is reducing tariffs on Chinese goods from 145 percent to 30 percent, while China is lowering its tariffs on US imports from 125 percent to 10 percent. These measures are intended as a temporary solution to ease the trade conflict and lay the groundwork for further negotiations.
Impacts on the Markets
The tariff agreement has led to euphoria on the stock exchanges. US stock futures, such as the Dow Jones Index and the Nasdaq-100 Future, show significant gains, indicating positive sentiment among investors. European markets, especially the DAX, also benefit from this development, as the reduction of tariffs increases growth potential for companies and reduces uncertainty.
Reactions from Politics and International Organizations
US President Donald Trump speaks of a “complete reset” with China and expects that tariffs will not be raised again after the 90-day pause. The European Union welcomes the agreement as a positive signal for global trade. The World Trade Organization (WTO) also supports the agreement as it promotes free global trade and reduces the risk of a trade war.
Importance for Investors
For investors, this tariff agreement is of great significance as it directly influences market movements and corporate valuations. A reduction in tariffs can lead to increased exports and imports, which can in turn promote the growth of companies and economies. At the same time, the risk of an escalating trade war decreases, which increases willingness to invest and stabilizes the markets.
Overall, the tariff agreement between the USA and China shows that political decisions can have significant impacts on global markets. It offers investors new opportunities, but also challenges, as the long-term effects and stability of this agreement remain uncertain.