Fitch Ratings has warned that the recent US-China tariff de-escalation does not mark a return to normal trade relations despite offering temporary relief. The joint statement from the Geneva trade meeting suspended a 34 per cent reciprocal tariff and cancelled a planned hike to 125 per cent, lowering US tariffs on Chinese goods to 30 per cent and Chinese tariffs on US goods to 10 per cent.
However, Fitch noted that without a lasting agreement, uncertainty will persist, continuing to weigh on global growth prospects. Although the US Effective Tariff Rate (ETR) for Chinese imports fell from 103.6 per cent to an estimated 31.8 per cent, it remains the highest for any US trade…