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S&P: US-CN Tariff Easing Brings Some Temporary Relief
S&P Global Ratings described the recent rollback of tariffs between the US and China as swift, which caught the market by surprise. While this has had a certain positive impact...
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S&P Global Ratings described the recent rollback of tariffs between the US and China as swift, which caught the market by surprise. While this has had a certain positive impact on credit conditions and economic performance, the agency believed that the relief was partial and might only be temporary.

Paul Gruenwald, Global Chief Economist at S&P Global Ratings, said that the reduction in US-China tariffs has improved the agency's macroeconomic outlook, which has reflected a combination of factors, including the direct impact on bilateral tariffs between the world's two largest economies, a reduction in policy uncertainty (though not entirely eliminated), more active asset prices, and the reopening of some previously frozen markets.

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In S&P's opinion, the easing of US-China tariffs would only bring temporary relief. In particular, the recent US-China agreement is merely a 90-day pause, and tariffs could rise again, and possibly see a significant increase, if no further agreement is reached after this period.

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