Trade Truce: What It Means For The Outlook
Source: SeekingAlpha
2025-05-17 02:50:00 ET
Summary
- The U.S.-China tariff truce marks a significant, albeit temporary, de-escalation in trade tensions — one that meaningfully reduces recession risks and helps stabilize near-term investor sentiment.
- Still, the policy path ahead remains highly uncertain.
- While the worst-case scenario may be off the table, the long-term implications for global trade and portfolio positioning are far from settled, especially considering tariffs are still higher compared to where they were at the start of the year.
By Christian Floro, CFA, CMT, Market Strategist
Source: Bloomberg, Principal Asset Management. Data as of May 12, 2025.
The 90-day tariff truce between the U.S. and China marks a significant, if temporary, easing of tensions that have weighed heavily on global markets since the start of the year. As both countries scale back punitive tariffs — U.S. rates dropping from 145% to 30%, and China’s from 125% to 10% — investors have responded with relief, sending risk assets higher this week as recession fears subside....
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Trade Truce: What It Means For The Outlook
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