Well, but not enough to mark a break. The United States and China announced the suspension on Monday for 90 days of most of the tasks of punitive customs that had become each other. And “this is obviously progress,” said Fed Adriana Kugler governor during an event in Ireland.
However, customs duties between the two countries “remain quite high”, while “China remains an important commercial partner of which we import many products,” he added.
“Under these conditions, I always expect a price increase and a slowdown in the economy, however, not in the same proportions as” relaxation between Beijing and Washington, “he said.
There are always many uncertainties about what will happen when the break ends, he continued. “But it helps, isn’t it? Obviously goes in the right direction,” said Mrs. Kugler.
A little earlier, in a speech, he emphasized that commercial policies “seem to have significant economic repercussions, even if customs duties remain close to their current level”, “even much higher than in recent decades.”
As for uncertainty about the evolution of customs tariffs, “it has already done it,” according to Mrs. Kugler, “repercussions on the economy” through a hurry for imports and a modification of the morals of households and companies, as well as the way they see the future.
Source: BFM TV
