U.S.-China Tariff 'Truce' Likely to Provide Relief to Chinese Manufacturers -- Market Talk

Dow Jones05-13

0816 GMT - The U.S.-China tariff "truce" will likely provide temporary relief for Chinese manufacturers, says Commerzbank Research senior economist Tommy Wu in a note. With frontloading of exports, China's economy should still grow at a decent pace in 2Q, compared with a sharp slowdown previously expected by Commerzbank. Exports should support growth again in 2Q and early 3Q, Wu says. "However, beyond the 90-day period, it is too early to tell whether the truce will continue, and what the tariff rates will be," he adds. Commerzbank now thinks China's 1H economic growth will be stronger than previously expected. However, 2H growth will be under pressure due to the uncertain trade outlook and doubts about consumption expansion, Wu says.(amanda.lee@wsj.com)

(END) Dow Jones Newswires

May 13, 2025 04:16 ET (08:16 GMT)

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