US and China Reach Temporary Trade Deal

The US and China have agreed to temporarily ease tariffs for 90 days as part of ongoing trade negotiations. The agreement, announced by the White House, involves reducing reciprocal tariffs by 115 percentage points and easing some non-tariff barriers. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer revealed the details after a weekend meeting with Chinese counterparts in Geneva, Switzerland.

The surprise trade deal between the U.S. and China has led several investment banks, including UBS, Morgan Stanley, and ANZ Bank, to revise their China growth forecasts upwards. The temporary 90-day halt on most tariffs has eased tensions and improved outlooks for Chinese equities. However, some experts caution that the deal is temporary and may not be a real breakthrough, and that China's stock market still depends on weak domestic fundamentals.

The article argues that President Donald Trump's biggest win is not a trade deal, but rather his distortion of reality, as the US and China have reached a detente in their trade war, with the US lowering its tariffs on Chinese imports from 145% to 30%. While markets have soared on the news, the article contends that this is not because the tariffs are good news, but rather because it appears that Trump may not have the stomach for his own radical economic policy. The remaining tariffs are still expected to cause economic pain, with consumer prices rising nearly 2% and job losses expected to hit an extra 456,000 by the end of the year.

The US and China have reached a trade agreement, with the US pausing most of its tariffs on China for 90 days and China suspending its retaliatory tariffs on the US. While the agreement is seen as a significant de-escalation of the trade war, it is uncertain whether it marks a permanent truce or just a temporary reprieve. The US is still maintaining higher tariffs on China compared to other countries, and the trade war is considered to be still simmering. The agreement has been welcomed by markets, with share prices rising in relief. However, the deeper impact of the trade rollercoaster is likely to persist, with companies remaining cautious about investing due to economic instability.

Recent US-China talks have shown that Beijing has refined its approach to dealing with US President Donald Trump, emerging from the negotiations with its geopolitical position reinforced. Analysts say China has become the 'only credible global counterweight to Washington' and has consolidated its status as a major world power.

Canadian Prime Minister Mark Carney has reshuffled his cabinet, appointing Anita Anand as the new foreign minister, replacing Mélanie Joly, who becomes industry minister. The cabinet shake-up comes after Carney led the Liberal party to re-election last month, promising to redefine Canada's economic and security relationship with the US. The new cabinet includes several key appointments, with women making up half of the ministers. Carney has emphasized building Canada into an energy 'superpower' and prioritizing nation-building projects.