The US-China trade deal leaves the tariff in the impact: what’s next?
Last week, a trade agreement was signed by US President Trump and Commerce Secretary Howard Lutnik. However, the details of the agreement were limited, enhancing concerns about the effectiveness of the deal and whether the two sides will stick to the terms.
While the details of the agreement are sketch, Beijing pointed to reducing business restrictions, said, said,
“China, according to the law, will approve export applications for controlled goods to meet relevant requirements. The US side will accordingly raise a series of restrictive measures imposed on China.”
Beijing referred to the approval of license for rare earth mineral exports to the US and the possibility of removing American controls on semiconductor exports to China. Removing these restrictions may pave the way for tariffs, which remain in effect.
US Treasury Secretary Scott Besent approved any confusion about business deal and tariff, stating,
“Now our tariffs are 30% on China, they have 10%. 20% of China are in the fantanel tariff place.”
Markets i export trends and tariff developments
Although the market reaction to the US-China trade deal was mixed, the demand for Hong Kong and the mainland China increased due to reducing trade tension. Expectations of further excitement measures also increase the appetite of the investor for the shares of the mainland China. However, concerns about the impact of tariffs running on external demand reduce monthly gains.
In June, the CSI 300 and Shanghai Composite Index were upgraded 2.5%and 2.9%respectively, while the Hang Seng index increased by 3.36%. In contrast, the NASDAQ composite index was jumped by 6.57% in June and to reduce the growing bets on several fed rate cuts.
