tariff truce: u.s. and china agree to 90-day suspension

2025-05-13 general

New York, Tuesday, 13 May 2025.
the u.s. and china have reached an agreement for a 90-day partial tariff suspension. trade negotiations will continue. this eases economic concerns and triggered a market rally. crude oil futures experienced a boost. china will reduce tariffs on u.s. products to 10% starting may 14. the chinese government has also lifted restrictions on boeing aircraft deliveries, signaling a positive shift in trade relations. this agreement aims to alleviate concerns about economic slowdowns and energy demand stagnation.

market reaction

The agreement led to a boost in crude oil futures, marking a fourth consecutive day of gains on the new york mercantile exchange (nymex) [1]. The west texas intermediate (wti) crude for june delivery closed at $63.67 per barrel, a 2.776 or 2.8% increase [1]. This positive movement reflects an easing of concerns regarding economic slowdowns in both the u.s. and china [1]. The broader market also saw a rally, driven by renewed optimism [1].

tariff adjustments

Starting may 14, china will lower tariffs on u.s. goods to 10% [1]. This reduction follows the u.s. agreeing to decrease tariffs on chinese goods to 30% [5]. previously, tariffs were as high as 125% on u.s. goods entering china and 145% on chinese goods entering the u.s. [5][7]. the bbc reports that reciprocal tariffs will be lowered by 115 percentage points for 90 days [4]. these adjustments signal a significant de-escalation in trade tensions [4][5].

boeing restrictions lifted

Adding to the positive momentum, the chinese government has removed restrictions on boeing aircraft deliveries [1]. this decision reverses a previous stance that was seen as a retaliatory measure against the u.s. [1]. the resumption of boeing deliveries indicates a willingness from china to move towards normalized trade relations [1]. this development is particularly significant for boeing [alert! ‘as it suggests renewed access to a critical market’] and could positively impact its stock value [GPT].

expert opinions and analysis

Treasury secretary scott bessent highlighted that the agreement includes a 90-day suspension of ‘reciprocal tariffs,’ emphasizing a reduction of 115 percentage points on both sides [4]. despite these positive steps, president trump’s tariffs from his first term remain in place [7]. independent scholar zhang li noted that the ‘significant progress’ is largely symbolic, establishing a trade consultation mechanism that marks the beginning of a lengthy negotiation process [8]. exporters are expected to maximize shipments within the 90-day window, potentially straining shipping schedules [5].

potential impact on stock values

The partial tariff suspension and continued negotiations are expected to positively influence stock values, particularly for companies heavily involved in trade between the u.s. and china [2]. sectors like agriculture and aviation could see notable gains [3][1]. however, economist kevin rinz cautions that the long-term impact remains uncertain, as the tariff landscape beyond the 90-day period is yet to be determined [5]. investors should closely monitor further negotiations and policy adjustments to accurately assess potential risks and opportunities [GPT].

Bronnen

Trade Tariffs Economic Impact