The U.S. and China reach 90-day tariff truce

Marketplace Morning Report

American Public Media

News, Business

4.5 • 808 Ratings

🗓️ 12 May 2025

⏱️ 8 minutes

🔗️ Recording | iTunes | RSS

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Summary

U.S. tariffs against China have been cut from 145% to 30% as part of a new 90-day trade deal. This is still higher than when President Donald Trump assumed office and could result in higher consumer prices and lower corporate profits. Also: Student loans follow some borrowers into retirement. The number of student borrowers over 62 rose by 59% from 2017 to 2023, and older borrowers are twice as likely to default than their younger peers.

Transcript

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0:30.7	U.S.-China tariffs are coming down for now. From Marketplace, I'm Surrey Benshore, in for David Brancaccio. The U.S. and China have agreed to a
0:39.7	90-day tariff truce while they figure out a more permanent trade deal. The U.S.'s 145 percent
0:46.0	taxes on Chinese imports would come down to 30 percent. China's 125 percent taxes on U.S.
0:52.5	goods would come down to 10%.
0:54.8	Julia Coronado is founder of macro policy perspectives and a professor at UT Austin.
0:59.3	Hi, Julia.
1:00.4	Good morning.
1:01.2	So 145% tariffs would have basically all but ended trade with China, unraveled business models, sent inflation soaring.
1:09.4	What do 30% tariffs do? It still means that we will
1:14.5	see higher tariffs. This is higher than was in place before. And we still have 10% tariffs on
1:21.3	every other country. So the combination does mean that we're still going to see tariffs on all
1:27.2	imported goods. and that will result
1:30.0	in some combination of higher consumer prices and lower profits for the companies selling those
1:35.8	goods. So we're still looking at a trade shock, just not a catastrophic trade shock.
1:41.9	The consumer price index is coming out later this week. Do you think we will
1:45.5	see prices rise and how much more do you think they'll go with the current tariff set up?
1:52.0	Yeah, so this will be data for April. And we think that we'll start to see early indications of
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