The Renewed Trade Dispute Between the USA and China
The US stock markets are currently experiencing some significant losses as the trade dispute with China reignites, bringing about new uncertainties. These tensions not only burden the American markets but could also negatively impact international stock exchanges. Investors are responding sensitively to the escalating conflicts between the two largest economies in the world, which is of great importance for private investors and savers.
Past Agreements and Current Regulations
In May 2025, the USA and China initially agreed to a temporary suspension of part of their mutual tariffs for 90 days, which led to a short-term relief in the markets. US tariffs on Chinese imports were reduced from up to 145 percent to about 30 percent; China’s surcharges on US imports fell from 125 percent to around 10 percent. Furthermore, a consultation mechanism was established to resolve future disagreements through dialogue.
However, significant burdens remain: Since May 2, 2025, there has been no de-minimis exemption for imports from China into the USA. This means that low-value shipments from China are generally subject to regular tariff rates; in addition, high additional tariffs are imposed (up to 120 percent on mail shipments). Some tariffs are temporarily suspended, but other punitive tariffs remain in place – for example, those due to the fentanyl issue or Section 301 tariffs.
Impact on Investors and Savers
These contradictory signals lead to uncertainties in the financial markets. Investors are reacting with caution or selling, resulting in losses in stock prices. For private investors and savers, this means:
- Higher volatility in the stock markets can temporarily burden portfolios.
- International trade conflicts can disrupt supply chains and impair corporate profits.
- An increased risk aversion might make safe investments such as government bonds more attractive.
- In the long term, the development of the trade dispute remains an important factor for economic stability and return potential.
In summary, the renewed flare-up of the trade dispute between the USA and China is currently significantly burdening the US stock markets due to new tariff regulations and political tensions. This also has international repercussions and requires private investors to be more vigilant regarding market risks in the context of global economic relations.