Tue, 13 May 2025

Tue, 13 May 2025 'I can get my Christmas tree order' - firms give sigh of relief at tariff truce

Businesses are moving ahead with shipments, as the deal to reduce tariffs raises hopes over the economic outlook.

* US and China announce agreement to reduce tariffs on goods
* US will cut back new duties from 145% to 30%
* China agrees to lower retaliatory tariffs on US products to 10%
* Business owners in New York City, such as Morris Dweck, breathe sigh of relief after sudden cancellation of shipments due to tariff increase
* Trade between US and China had plummeted by 60% year-on-year, with many businesses at risk of empty shelves during festive season
* Analysts now expect reduced odds of recession in the US this year following trade truce
* Businesses in both countries still wary of future tensions and potential tariffs rises
* US President Donald Trump warns that tariffs could rise again if negotiations do not make progress over next 90 days.
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