U.S. and Chinese officials had their promised trade talks over the weekend, emerging on Monday morning with a significant reduction in tariffs for 90 days while negotiations continue. The 90-day pause is good news for many tech and photography companies, although it remains unclear how each will navigate the turbulent waters.
The United States and China reached a deal to significantly reduce most recent tariffs for 90 days, essentially a 90-day trade war truce. U.S. Trade Representative Jamieson Greer said the U.S. agreed to reduce its tariff rate on Chinese goods from 145% to 30%, while China said it will lower its tariff rate on United States goods by the same 115 percentage points, bringing its tariff rate to 10% on U.S. imports, The Associated Press reports.
Analysts characterize Greer and Treasury Secretary Scott Bessent’s mood in Geneva, Switzerland, where the weekend talks were held, as upbeat. Both sides have publicly stated that maintaining the over-100 percent tariffs would have amounted to completely suspended trade between the countries, an outcome neither the U.S. nor China seemingly wants.
“The consensus from both delegations this weekend is neither side wants a decoupling,” Bessent said in Geneva. “And what had occurred with these very high tariff… was an embargo, the equivalent of an embargo. And neither side wants that. We do want trade.”
“We want more balanced trade,” Bessent continued. “And I think that both sides are committed to achieving that.”
“This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world,” a Chinese Commerce Ministry statement said.
The impact of the high Chinese tariffs was already being felt. Last week, the Port of Seattle commissioner said that there were no container ships at berth, an ominous sign and a reflection of the tariffs on China.
Photographers have felt the sting, too. Leica hiked prices on its products by as much as 90%, with the most significant price jumps, as expected, being products primarily manufactured in China. Then, of course, there are the many Chinese lens manufacturers, including Viltrox, 7Artisans, TTArtisan, Laowa, and more, all of which make high-quality products that are generally much more affordable than first-party alternatives. While the supply already stateside ahead of the tariffs is immune to additional penalties, that stock eventually runs out.
PetaPixel recently spoke to Clever Supply Co., an American company that makes its high-quality leather camera straps in Louisville, Kentucky, using primarily American materials, including cowhide. However, some components, like rivets, Peak Design clips, and packaging materials, are only available outside the U.S., meaning that tariffs significantly impact the company’s bottom line. And that isn’t even considering Clever Supply’s new bags, for which it is working hard to shift manufacturing out of China.
While the stock market has reacted positively to the trade truce, there is no guarantee that this 90-day reduction will result in a permanently improved situation. The constant moving targets are devastating to companies, small and big alike, so everyone is desperately hoping for significantly more consistency.
“Businesses need predictability to maintain normal operations and make investment decisions. The chamber therefore hopes to see both sides continue to engage in dialogue to resolve differences, and avoid taking measures that will disrupt global trade and result in collateral damage for those caught in the cross-fire,” Jens Eskelund, president of the European Union Chamber of Commerce in China, said.
Image credits: Header photo licensed via Depositphotos.
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