Economics
Risks to U.S. Economy Linger With Trade Truce Prolonging Uncertainty
- American firms may delaying hiring, capex despite cease-fire
- Consumers remain a key support in U.S. growth outlook
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The U.S.-China trade cease-fire is likely to boost shipments of American goods, but that may be the biggest gain to the U.S. economy from the temporary deal as the threat of import levies lingers.
U.S. President Donald Trump and Chinese President Xi Jinping agreed over the weekend to halt new tariffs as the countries intensify talks to resolve a trade war. The deal, with a deadline of 90 days to make progress on key issues, includes China promising to increase purchases of U.S. agricultural and industrial goods.