Africa-Press – Eswatini. Eswatini stands to realise significant gains in international trade, as the United States of America (USA) and the People’s Republic of China (Mainland China) have agreed on a new trade deal.
Under the deal, the US and China have agreed to significantly cut tariffs for 90 days, boosting markets and lifting the dollar. The U.S. will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, the two countries said on Monday.
According to media reports, for Eswatini, the recent developments could mean a more stable global economy, potentially impacting import costs and trade relationships. Economist Sanele Sibiya is also of the view that the recent development could bring some positives for Eswatini.
Sibiya said the developments could remove uncertainties from the markets, making the international trading to be less difficult for Eswatini business people. Sibiya noted that even though the agreements would be valid for 90 days. However, he said the 90 days could have a lasting positive impact because more countries could approach the USA with trade proposals.
The trade proposals could bring even more positive improvements in the international markets, which could also positively impact Eswatini. He hopes USA President Donald Trump would be able to make favourable deals with many other countries, bringing significant improvements in the international trade space.
According to CNBC, market watchers have labeled the new U.S.-China deal to temporarily cut tariffs “better than expected,” “more workable” and even a “dream scenario” — and are expecting more near-term relief for investors.
Under the deal, so-called reciprocal tariffs will drop from over 100% to 10% on both sides. The Trump administration will keep 20% fentanyl-related tariffs on China in place, meaning America’s total duties on Chinese imports will stand at 30% while the 90-day pause is effective.
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