U.S., China reach temporary trade deal. How does this affect consumers?
DAYTON, Ohio (WDTN) — U.S. and Chinese officials say they have called a 90-day truce in their trade war, rolling back most of the recent tariff hikes.
The agreement drops the 145 percent U.S. tariff on Chinese goods down to 30 percent, and China agreed to lower its rate on U.S. goods to 10 percent.
Trump's next 100 days: Trade deals, foreign policy and reconciliation
Experts say that this agreement is temporary and could change at any time in this 90-day period. However, they say it is still a great sign that both countries are working to find a solution.
'My fear would be that a lot of businesses go under, just because it's so sudden,' said Eric Rothman, Dayton resident.
Several Dayton residents share similar sentiments: concerned for local businesses amidst the ongoing trade war between the United States and China.
According to officials, both countries say they recognize how important it is to resolve this trade issue, but Rothman says he and many other Americans are concerned about the economic impact once a deal is reached.
'I do get the sense, like sure, I think this is where we're maybe headed toward a better place than we were,' said Rothman. 'But I still feel like there's some damage that's been done.'
In a new agreement, Chinese goods will have a reduction from thee initial tariff of 145 percent to 30 percent.
According to experts, 10 percent is a baseline tariff, while the other 20 percent is to get the country to do more to stop the flow of fentanyl into the country.
'This is sort of a way to sort of induce Beijing to do more, to stop that trade, to take some more aggressive stances to prevent fentanyl from coming into the United States,' said Riley Dugan, University of Dayton professor, dept. head of Management and Marketing.
How US-China tariffs reached sky-high levels in 3 months
For the U.S., the tariff will be lowered from 125 percent down to 10 percent. Dugan says the stock market are now responding to news of the deal, adding that this agreement is a good sign for consumers and investors.
'But the fact that you're at the table talking things out, that's a huge sign,' said Dugan. 'That's a huge sign of progress. So it's good news for sure.'
The new 90-day deal is now in place, but experts say to keep in mind that policies are not permanent, and can change quickly as the two countries continue to work to reach a long-term trade solution.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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