A Welcome Trade Policy U-Turn

2025-05-13 20:30:00 ET

Summary

• We have to hope that the agreed-upon 90-day trade war truce will be sufficient time to negotiate a permanent ceasefire.
• We also have to hope that the market euphoria with which the trade war truce is being greeted does not breed US economic policy complacency.
• There can be no question that the reduction in the US import tariff on China to 30 percent will reduce one source of inflationary pressure.

Treasury Secretary Scott Bessent and He Lieng, China’s vice premier for economic policy, are to be congratulated for pulling the US and Chinese economies from the brink and substantially de-escalating the US-China trade war at last weekend’s Geneva meeting....

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