The recent tariff agreement between the US and China marks an important step towards improving economic relations between the two countries. Uncertainty in trade issues has been observed for several months, and this agreement brings optimism to financial markets.
Tariff Agreement and Its Impact on Markets
The announcement of the tariff agreement between the US and China led to positive changes in financial markets, which have been closely monitoring trade discussions in recent months. Changes began after the tariff hike announcement on April 2.
Changes in Global Trade
With the commencement of negotiations with China, hopes for a comprehensive resolution to the tariff conflict emerged. Last month, both countries agreed to reduce mutual customs duties by 115 points, allowing US tariffs on Chinese imports to be reduced to 30%, while tariffs on US goods in China drop to 10%.
Future of US-China Economic Relations
Despite positive changes, significant uncertainties remain regarding a long-term resolution. According to the US Treasury Secretary, the complete elimination of tariffs is not on the table. Global GDP growth projections for 2025 have been lowered due to high tariffs, but ongoing negotiations may improve the situation.
The ongoing negotiations suggest that while the trade war impacts global trade, it is expected to remain resilient. The current economic situation emphasizes the need for interest rate cuts to stimulate growth.
