US-China tariff suspension brings temporary relief to macroeconomic outlook: S&P
Although tail risks have considerably eased, global trade climate would still have an impact on financial conditions and credit rating outlook, Standard & Poor's says
ISTANBUL
International credit rating agency Standard & Poor's (S&P) has reported that the easing of tariff tensions between the US and China has provided temporary relief to macroeconomic conditions.
"This tariff climbdown improves our macroeconomic outlook, considering the direct effects of lower bilateral tariffs on the world's two largest economies, reduced policy uncertainty, more buoyant asset prices, and some reopening of markets," the agency said in a statement Thursday.
The latest tariff moves between the US and China are positive for growth, the statement said, adding that the global trade environment will continue to put pressure on credit conditions, although some risks have subsided for now.
S&P stresses that although tail risks have considerably eased, the global trade climate would still have an impact on financial conditions and the credit rating outlook.
"The possible impact continues to be uneven across sectors and countries," it added.
China and the US issued a joint statement Monday on trade for the first time in many years after talks in Geneva, Switzerland over the weekend.
In the statement, it was announced that the two countries would temporarily reduce tariffs mutually by 115% for 90 days as of May 14.
The US would reduce its tariff rate on China to 30% from 145% and China would reduce its rate against the US to 10% from 125%.
