The United States and China have agreed to reduce tariffs by 115% starting May 14 for 90 days. The agreement was reached when representatives from both countries met in Geneva, Switzerland, yesterday. The United States currently only imposes a 30% import tariff on China while China only imposes a 10% tariff. So, what should you know about it?
For your information, the trade war between the two countries saw President Trump impose a high tariff rate of 145% on China because of its high import deficit, which was seen as detrimental to the United States. He then imposed tariffs of up to 245% on certain products after China imposed a retaliatory tariff of 125% on the United States.
Additionally, global stock markets have been in turmoil after Trump's tariffs, and in the United States, concerns have emerged that local companies will be hit hardest because their products are manufactured in China. Apple has taken steps to import iPhones from India and other products from Vietnam to avoid high tariffs.
Although this agreement to reduce import tariffs has been welcomed by industry players, there is still uncertainty about what will happen after the 90-day period expires. We have yet to confirm other details on the news. Hopefully, everything will be sorted out soon.
What are your thoughts on this news? Comment below, and stay tuned for more news like this at TechNave.
COMMENTS