Fitch downplays positive turn of US-China tariff de-escalation

“Does not signal trade normalisation”

The lack of a firm trade deal between the US and China and ongoing uncertainty over their tariffs remains a cause for concern, despite the recent de-escalation of the trade war between the two countries, analysts at Fitch have said.

On Monday (12 May) in Geneva, the Joint Statement on US-China Economic and Trade Meeting suspended the 34% reciprocal rate the US imposed on Chinese imports on 2 April for 90 days, and cancelled the subsequent escalation in the reciprocal rate to 125% it announced on 8-9 April. Analysts at Fitch said the move "appears to be a significant de-escalation", but issued strong caveats. US and China make 'substantial progress' in trade deal agreement as tariffs slashed They added the announcement did not take away from the ongoing impact on macroeconomic forecasts of the "absence of a las...