The USA is reducing import tariffs to 30 percent during the 90-day tariff pause announced on Monday, following weekend negotiations. China is simultaneously lowering its tariffs to 10 percent.
Despite the tariffs being reduced more than many expected, SEB's chief economist Jens Magnusson says it's unfortunate that it's just a pause.
It's the uncertainty that's worrying and making companies and perhaps even households put off their decisions, he says and continues:
One doesn't want to invest or make any major commitments when it comes to the economy since one doesn't know how it will look like in a week or three months.
Great negotiating willingness
Both Maria Landeborn and Jens Magnusson note that it was expected that the USA and China would come to an agreement on a tariff pause, but that it came a bit earlier and with a larger reduction than expected.
The fact that they agree on such a low tariff level today shows anyway a great willingness to negotiate from both China and the USA, says Maria Landeborn, senior strategist at Danske Bank.
Nordnet's savings economist Frida Bratt describes the tariff pause as a welcome message but emphasizes that it's only a temporary pause and continued high tariffs.
"During the tariff pause, they will still be significantly higher than before Trump became president, which is unclear if the market has really taken into account", she notes in a written comment.
Dousa welcomes
Minister for Foreign Trade Benjamin Dousa (M) describes the tariff pause as a step in the right direction and underlines that it's good for the entire global trade.
"This clearly shows that Trump can't afford a trade war", he says in a written comment.
Even SEB's chief economist Jens Magnusson that the tariff pause is a positive signal for the rest of the world.
This says something to the rest of the world that there is actually room for real negotiations here. It wasn't just a pause for show, but they are actually willing to make concessions from the American side, says Jens Magnusson.
