U.S.-China Tariff Pause Brightens Growth Outlook -- Market Talk

Dow Jones05-12

1100 GMT - Significantly lower U.S. tariffs brighten the outlook for Chinese growth in the coming quarters, Danske Bank economists say. The truce between Beijing and Washington will let Chinese firms ship goods at manageable rates, and those could be reduced further if a deal on fentanyl is struck, Allan von Mehren and Antti Ilvonen say. That seems likely, based on positive comments from Bessent on China's efforts on this point. For China, the talks happening in a good atmosphere sincerity was key, vindicating its initial strong retaliation, with the U.S. now showing more respect, they say. Though a deal that meets all demands for both sides will be difficult, a scenario that U.S. tariffs on China are ultimately placed around 40% seem more likely. "A headwind, but manageable for both sides." (fabiana.negrinochoa@wsj.com)

 

(END) Dow Jones Newswires

May 12, 2025 07:00 ET (11:00 GMT)

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