Beijing and Washington strike a deal in the tariff war
China and the US have agreed to significantly reduce their mutual tariffs in their escalating trade dispute. Following consultations between the two sides in Geneva, US tariffs on Chinese imports will drop to 30 percent and Beijing's levies on US imports will drop to 10 percent as of Wednesday. Prior to the deal the tariffs had been raised to 145 and 125 percent respectively. The new arrangement will initially apply for 90 days. The media weigh in.
Tactical ceasefire
Political scientist Linas Kojala interprets the current situation in Politika:
“At present, this looks like a tactical ceasefire which creates room for further negotiations while limiting the economic damage. The tariffs introduced in April brought bilateral trade almost to a standstill. Although the current situation is not ideal, the markets have responded with a noticeable surge in growth. In this way the US is signalling that it is not seeking a complete economic 'decoupling' from China but rather new guidelines for bilateral trade. Those who argue that tariffs must be maintained at all costs have been pushed aside. ... Nevertheless, the 'tariff battle axe' could be dug up again at any moment.”
A shot in the arm for the WTO
The self-inflicted weakening of the US economy opens up the chance for the World Trade Organisation (WTO) in Geneva to make a comeback, Le Temps observes:
“One minute Washington is talking about industrial sovereignty, the next it is rejecting the decoupling of the two largest economies. ... Trump's flip-flopping and changes of course convey an amateurish impression that could prove costly. ... Beijing is beginning to understand how to handle his erratic positions. As for international Geneva, it may well have scored a point this weekend. ... Both the Chinese and the Americans may now turn to the World Trade Organisation again, which many considered moribund but which could now gain a new impetus that is as necessary as it is unexpected.”
Reputation in tatters
Mistrust of Washington persists, warns NRC:
“The damage Trump has done in a month cannot be repaired at the flick of a switch. The international transport sector was thrown into chaos by the tariffs, together with many exporting and importing companies worldwide. Uncertainty about what to expect from the US has penetrated deep into the economic system. The tariffs may be off the table for now, but the mistrust certainly isn't. ... For the time being Treasury Secretary Scott Bessents' moderate faction, which is more focused on free trade and globalisation, including the diplomatic customs that go with it, seems to be prevailing in the White House.”