TARIFF TAKEDOWN
05/12/2025 |
The unexpectedly large reduction in Chinese tariffs is good. This reduces the overall average import tariff to 12% from 25%. But tariffs on imported Chinese goods remain 30%, the reprieve is only for 90 days, and China hasn’t made any concessions. Significant uncertainty remains. Critically, the trend is positive, no new tariffs have been imposed since Liberation Day. This move meaningfully reduces the likelihood of a June/July Fed rate cut.