I've just seen the announcement of the interim trade deal between the US and China. In that deal, they've agreed on a 90 day pause, with tariff rates falling to 10% on the Chinese side, and 30% on the US side. That's down 115 percentage points from the current highs. It also appears other measures have been suspended, such as the refusal to supply rare earth elements.
Looking and listening to Scott Bessent the US Secretary of the Treasury, he appeared shaken, his voice was quavering, and his demeanour weak. What I think has happened is China has read the US the Riot Act and said, in effect, you need us, we don't need you. And the US buckled.
Now what I think will happen is for negotiations to take forever. And while that happens, China will punish the US.
https://edition.cnn.com/2025/05/12/business/us-china-trade-deal-announcement-intl-hnk
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