What does the temporary cooling of the tariff conflict mean?
At the high-level meeting on Sino-US economic and trade issues held in Geneva, Switzerland, the two sides talked for two days and issued a joint statement: both China and the US agreed to cancel 91% of the additional tariffs, suspend 24% of the additional tariffs for 90 days, and keep 10% of the tariffs. More importantly, both sides also left room for negotiation and promised to establish a mechanism for discussing economic and trade relations, which is the first time in seven years.
Over the past month, trade conflicts have escalated, and every link cannot digest the impact of ultra-high tariffs. In American ports, the number of ships departing from China to the ports has been halved, leading to a sharp drop in cargo volume; American consumers are facing empty shelves and expected price increases. On the other hand, according to customs data, China's exports to the US in April decreased by more than one-fifth year-on-year. These facts indicate that there are no winners in a trade war. As the tariff conflict temporarily cools down, what will happen next? Orders will return. The owner of a clothing manufacturer said that as soon as the joint statement was released, they received news from American customers that they were resuming orders, stocking up on goods for the back-to-school season and year-end holidays; the pent-up demand is also causing changes in the shipping market, making both cargo ships and ports bustling again.
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