U.S., China to stick to ‘slow tit-for-tat’ despite easing tensions
CNBC · New
CNBC
New
LGT Private Banking’s Stefan Hofer says U.S.–China relations will likely remain a “slow tit-for-tat” dynamic even after recent signs of de-escalation, adding that massive AI capital spending could persist across industries.
Breakdown
- Tariffs on certain goods, including fentanyl, have been reduced, lowering the overall U.S. tariff rate on Chinese imports from 57% to 47%. 10s
- China has agreed to delay export restrictions on rare earths for a year, while the U.S. has committed to increased soybean sales to China. 59s
- Key leverage points in the trade relationship remain rare earths for China and chips for the U.S., though chips were not included in the latest discussions. 1m 22s
- Both countries are expected to continue a gradual, reciprocal approach to trade negotiations, applying and easing pressure in sensitive areas. 1m 58s
- Broader economic trends, such as significant capital expenditure in artificial intelligence, are influencing market reactions and investment strategies. 3m 7s