Chinese Businesses View Tariff Pause With Caution And Uncertainty

While U.S. President Donald Trump has talked of victory after reaching a weekend deal with China to reduce the sky-high tariffs levied on each other's goods, businesses in China are reacting to the temporary deal with caution.

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The USA and China have cut the tariffs levied on each other in April, with the USA cutting the 145 per cent tax Trump imposed last month to 30 per cent. China agreed to lower its tariff rate on U.S. goods to 10 per cent from 125 per cent. The lower tariff rates came into effect on Wednesday.

U.S. Treasury Secretary Scott Bessent, announcing the reduction in tariff rates this weekend in Geneva, had said, "We do want trade." While the markets have responded to the agreement with gusto, rebounding to the levels before Trump's tariffs, business owners remain wary.