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'I can get my Christmas tree order' - firms give sigh of relief at tariff truce

'I can get my Christmas tree order' - firms give sigh of relief at tariff truce

Summary

The United States and China have agreed to reduce tariffs, lowering them from 145% to 30% for US imports and from 70% to 10% for Chinese goods. This development eased concerns for businesses like New York retailer Morris Dweck, who had been affected by the tariffs but can now resume shipments.

Key Facts

  • The US and China have agreed to decrease tariffs that were recently increased.
  • The US will reduce tariffs from 145% to 30%.
  • China will lower tariffs on US products to 10%.
  • These tariff changes help businesses like Morris Dweck's, a New York retailer, who faced issues due to high tariffs.
  • Lower tariffs may prevent a steep drop in US spending and business activity.
  • The reduction in tariffs has reduced the chance of a recession, according to firms like Oxford Economics and Goldman Sachs.
  • Planned shipments from China to US ports had fallen by 60% but may recover with the tariff changes.
  • Businesses are preparing for possible future tariff changes by looking for suppliers in other countries.
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