The US and China have agreed on a deal to help resolve the trade war raging between the world’s two largest economies, top Trump administration officials announced Sunday.
Details of the deal, struck during negotiations in Switzerland over the weekend, were not revealed, but officials teased that more information will be shared on Monday. Source: Karli Bonne on X
🔴 BREAKING: US and China agreed to LOWER tariffs on each other for 90 days until further agreement is reached.
▶️ US cuts tariffs on Chinese goods to 30% from 145% (a base 10% plus 20% fentanyl duty) from May 14th. ▶️ China cuts tariffs on American goods to 10% from 125%. ▶️ Reductions DO NOT include sectoral duties imposed on all US trading partners, and the tariffs applied on China during the first Trump administration remain in place. Treasury Secretary Scott Bessent said that neither side wants to decouple. As a reminder, in 2018, both sides also agreed to pause, but the US backed away from that, which led to more than 18 months of further tariffs and talks. It is a short-term relief at least. But just one headline may reverse everything again. Stay tuned. Source: Global Markets Investor
US-China Trade (temporary) deal summarized
(see below table by Mike Zaccardi, CFA, CMT, MBA. 👉 As highlighted by a CNBC article >>> The new U.S.-China deal to temporarily cut tariffs is better than expected, providing near-term relief for investors. Under the deal, so-called reciprocal tariffs will drop from over 100% to 10% on both sides. The Trump administration will keep 20% fentanyl-related tariffs on China in place, meaning America’s total duties on Chinese imports will stand at 30% while the 90-day pause is effective. 👉 In a note to clients on Monday, Tai Hui, chief market strategist for Asia Pacific at JPMorgan Asset Management, said the deal unveiled in Geneva was better than anticipated, but uncertainty remained. “The magnitude of this tariff reduction is larger than expected,” he said, although he noted that it would be difficult for Beijing and Washington to reach a more concrete trade arrangement in just three months. “The 90-day period may not be sufficient for the two sides to reach a detailed agreement, but it keeps the pressure on the negotiation process,” Hui said. “We are still waiting for further details on other terms of this agreement, for example, whether China would relax on rare earth export restrictions.” Source: CNBC
Breaking
PBOC: TO LOWER RRR BY 50 BPS TO CUT POLICY RATE BY 10 BPS TO CUT STRUCTURAL MONETARY POLICY RATE BY 25 BPS TO CUT PERSONAL PROVIDENT FUND LOAN RATE BY 25 BPS. TO INCREASE THE CAPITAL MARKET SUPPORT TOOLS QUOTA TO 800B YUAN.
BREAKING: Treasury Secretary Scott Bessent says he will be meeting with Chinese officials in Switzerland to begin trade talks with China.
Bessent went on Fox News to break the news. "So, we will meet on Saturday and Sunday..."
Ships sailing from China to US hits 2 week high.
But Long Beach was supposed to be a ghost port... @zerohedge
China is back buying gold
Source: zerohedge, Bloomberg
UAE PICKS AMERICA OVER CHINA IN THE GLOBAL AI ARMS RACE Abu Dhabi’s tech giant G42 is going all-in on the U.S.—not Beijing—as it races to become one of the world’s most powerful players in
With a $1.4 trillion investment plan aimed squarely at the U.S., the UAE is signaling a strategic pivot: America is its partner of choice for AI dominance. G42, backed by the oil-rich emirate and chaired by national security adviser Sheikh Tahnoon bin Zayed, has quietly launched “G42 USA” in Delaware and is expanding rapidly into American cloud services, chipmaking, and AI infrastructure. The company just pumped $335 million into U.S. chipmaker Cerebras, after cutting ties with Chinese suppliers like Huawei to meet U.S. national security demands. It already counts Microsoft, Silver Lake, and Ray Dalio’s firm among its investors. People familiar with the matter added that some of G42’s subsidiaries — which include AI applications, cloud computing and data centre companies — are expected to make announcements about US business plans in the coming months.
