U.S. and Chinese officials said Monday they had reached a deal to roll back most of their recent tariffs and call a 90-day truce in their trade war for more talks on resolving their trade disputes.
The U.S. agreed to drop its 145% tariff rate on Chinese goods by 115 percentage points to 30%, while China agreed to lower its rate on U.S. goods by the same amount to 10%.
Also, it will take weeks for the whole process to get started again. Once deals are made, factories start production again, and containers are loaded onto ships, which will then take weeks to make it across the ocean. We’re talking months of supply chain shocks in the best possible case.
Not to mention Trump might just decide to put the tariffs back again tomorrow
Someone tells him how bad he’s been duped and the chances of that are higher.
Or they might go to zero percent tomorrow… I expect a lot of importers would anticipate the rate dropping to 10% and will wait. Think of how much a fool you would feel paying 145% tax the other day and the next business now only pays 30% because there goods were a few days behind.
And the companies already harmed by the tariffs, having to pay because their inventory happened to arrive on one of the days tariffs were on. Now they’ve paid, but competitors that had their inventory arrive a week earlier or later didn’t have to pay.
I was just thinking about Adafruit, and how pissed they must be.
Yep that’s exactly who I was thinking of, couldn’t think of the name though.
Yeah, I think it’d genuinely be less harmful to keep the tariffs on consistently rather than having all this on/off/on/off BS