Meeting in Switzerland with success
Delegations of the US and China met im Switzerland last weekend to talk about the tariffs both countries raised vs each other. Now an agreement was reached which is good news. Import tariffs of the US vs Chinese goods will reduce from 145% to 30% and visa versa tariffs on US imports into China will be cut from 125% to 10%. Markets react positive.
BUT…
Now comes the downside: the agreement is only temporary for 90 days. The question remains „What will happen afterwards?“ That’s why the market reaction was not euphoric. We still have to wait if this direction of ease and diplomacy will be continued and will lead into a new stability. I am not sure. Imo the uncertainty and tactical maneuvers will go on, both the US and China trying to stay the dominant player resp. become the dominant player in world trade.
What is your view on the current developments?
