US-China tariff pause eases trade tension

The temporary agreement between the US and China to slash the severe reciprocal tariffs imposed on each other and to cooperate to prevent further disruption to the global economy should have a positive impact on trade, according to an analyst. In the financial sector, the measures have diminished the US's status as a safe haven, as capital outflows from the US over the past few months strengthened other currencies, such as the yen, Taiwanese dollar and the baht. The US tariffs stunted the economy in Yiwu, the world's largest wholesale market located in Zhejiang province, to the point that the area was described as a ghost town, he said.

Author: Wichit Chantanusornsiri

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