US and China Reach a Temporary Tariff Agreement, Beijing Lifts Ban on Boeing, Market Reacts with Caution

Taiwan • Business • 05/14 10:59
US and China Reach a Temporary Tariff Agreement, Beijing Lifts Ban on Boeing, Market Reacts with Caution

On May 14, 2025, the US and China reached a 90-day agreement on tariffs in Geneva, agreeing to significantly lower punitive tariffs. The Chinese government subsequently lifted the ban on receiving Boeing aircraft, allowing the resumption of deliveries and easing Boeing's delivery crisis in the Chinese market. However, experts note that the core issues of the trade war remain unresolved, and businesses still face uncertainty.

Key Updates

10h ago

Walmart's announcement of a price increase at the end of May, due to the new US tariff policy, led to a 4% drop in its stock price.

On May 15th, 2025, American retail giant Walmart announced that due to the Trump administration's new tariff policy, the company will raise the prices of some products starting from the end of May. CEO Doug McMillon stated that in the face of import tariffs as high as 30%, the company cannot fully absorb the cost pressures. After the announcement, Walmart's stock price fell more than 4% in early New York trading.

05/15 21:54

Jim Cramer, a financial commentator, says Walmart shows resilience amid the pressure of US-China tariffs.

Well-known financial commentator Jim Cramer mentioned on CNBC that despite the high tariffs imposed by the United States on Chinese goods, Walmart and two unnamed retailers remain competitive. Walmart reported earnings of 61 cents per share in the first fiscal quarter of 2025, which exceeded expectations. Walmart tackled tariff pressures by adjusting its product mix and maintaining supply chain flexibility. Its advertising and subscription services offer additional revenue streams, with approximately two-thirds of its products being sourced from the United States, which helps reduce the impact of import tariffs.

05/15 18:56

U.S. and China Reach Tariff Agreement: Talks in Geneva Lead to Substantial Tariff Reductions, Alleviating Pressure on U.S. Consumers and Finances

In the middle of May 2025, during high-level talks in Geneva, Switzerland, the US and China reached an agreement on tariffs, temporarily easing the trade tensions that had been ongoing since early April. The US reduced tariffs on Chinese goods from 145% to 30%, while China reduced tariffs on US goods from 125% to 10%. This 90-day agreement aims to alleviate pressure on US consumers and financial market volatility, and create room for further bilateral trade negotiations.

05/15 04:56

The tariff truce between the US and China has caused a 300% increase in container bookings between the US and China, and Hapag-Lloyd anticipates continued growth in volume.

On May 12, 2025, the United States and China reached a 90-day tariff ceasefire agreement, substantially lowering punitive tariffs, resulting in a rebound in the trans-Pacific shipping market. According to Vizion data, container bookings for imports from China to the U.S. surged by nearly 300% within a week after the agreement took effect. Hapag-Lloyd reported that bookings on U.S. routes increased by 50% compared to the same period the previous week, and transportation demand is expected to continue rising in the coming weeks, reflecting the swift release of trade demand that had been stifled by high tariffs.

05/14 18:27

Revealing the Share of Chinese-Made Products in the US Market: Dependence on Imports Ranging from Everyday Items to Home Appliances

Data from the United States International Trade Commission and the Department of Commerce shows that even amid U.S.-China trade tensions and high tariffs, China remains one of the major sources of imports for the United States. In 2024, a significant portion of home goods imported by the U.S. were made in China, including 90% of cookware, 66% of tableware, and 87% of refrigerators. As of March 2025, China was the third-largest source of imports for the U.S., with total imports exceeding $1030 billion. Despite the impact of tariffs, China's leading position in the U.S. market remains unshaken, indicating the U.S.'s dependence on Chinese manufacturing.

05/14 15:25

US and China Announce 90-Day Tariff Ceasefire; The $6.5 Trillion in US Treasury Bonds Maturing in June Attracts Market Attention

On May 14, 2025, following the economic and trade talks between the US and China in Geneva, the announcement of a 90-day tariff truce was made. The US will lower tariffs on Chinese goods from 145% to 30%, and China will reduce tariffs on US goods from 125% to 10%. The US's $6.5 trillion national debt is due to mature in June, raising concerns in the market about the risk of default. Experts believe the chances of a US debt collapse are low but advise investors to monitor exchange rate fluctuations and risks related to capital flows.

05/14 10:59

US and China Reach a Temporary Tariff Agreement, Beijing Lifts Ban on Boeing, Market Reacts with Caution

On May 14, 2025, the US and China reached a 90-day agreement on tariffs in Geneva, agreeing to significantly lower punitive tariffs. The Chinese government subsequently lifted the ban on receiving Boeing aircraft, allowing the resumption of deliveries and easing Boeing's delivery crisis in the Chinese market. However, experts note that the core issues of the trade war remain unresolved, and businesses still face uncertainty.

05/14 02:25

Inflation pressure in the U.S. is easing, but the impact of tariffs has not yet been observed. Forecasters are warning of potential price increases in May or June.

April inflation data in the U.S. indicates that the annual growth rate has dropped to 2.3%, marking a four-year low, which is below expectations. However, economists believe that the Trump administration's high tariff policies have not yet been fully reflected in prices, due to companies stockpiling inventories and the lagging effects of tariffs. The impact is expected to become evident in May or June. Federal Reserve officials remain cautiously watchful of future price trends, and the market is closely monitoring upcoming data to assess the impact of tariffs.

05/14 01:54

CNBC commentator Jim Cramer breaks down the effects of Trump's temporary tariff delay policy on the market's rebound.

Former President of the United States, Donald Trump, announced a temporary suspension of new tariff measures on China and other trade partners, which led to a market rebound. CNBC commentator Jim Cramer analyzed this policy reversal, pointing out that tech stocks benefited and market expectations were disrupted. Cramer described it as a "game of chicken without any winners," posing risks for short-term traders and highlighting the subtle interaction between policy and the market. This move might be intended to avoid an economic slowdown caused by tariffs, which could impact the Federal Reserve's ability to lower interest rates. The tariff pressure on businesses has been temporarily eased, and limited market supply and strong earnings reports also contributed to the stock market rebound.

05/14 01:54

U.S. inflation dropped to 2.3% in April, easing concerns over stagflation and leading to expectations of interest rate cuts.

According to data released by the U.S. Department of Labor on May 13, 2025, the annual CPI increase rate for April dropped to 2.3%, the lowest level since February 2021, which was below the expected 2.4%. The core CPI annual increase rate stayed at 2.8%, meeting expectations. This data shows that inflation has been slowing for three consecutive months, raising market expectations for a Federal Reserve interest rate cut, temporarily easing the risk of stagflation. However, uncertainty surrounding tariff policies could still impact future inflation trends.

US and China Reach 90-Day Tariff Agreement

After months of trade tensions, the United States and China reached a temporary 90-day tariff agreement on the 12th of May. According to the agreement, the US will reduce tariffs on Chinese imports from 145% to 30%, while China will lower retaliatory tariffs on US goods from 125% to 10%. Both parties also pledged to suspend other non-tariff countermeasures implemented since April 2.

This agreement provides a brief respite for affected businesses, especially on the eve of the mid-year inventory peak. US Treasury Secretary Scott Bessent stated that the agreement aims to create space for negotiations and avoid a complete trade disruption.

Beijing Lifts Boeing Planes Delivery Ban

Following the tariff agreement, the Chinese government quickly acted to lift the delivery ban on Boeing planes. According to Bloomberg and multiple media reports, Beijing has informed domestic airlines and relevant government agencies that they can resume receiving US-made Boeing planes effective immediately. Previously, due to high tariffs and political standoff, Chinese airlines were ordered to suspend receiving Boeing planes, resulting in at least three planes being returned to the US from Boeing's delivery center in China.

Sources indicate that airlines can decide the timing, location, and conditions of delivery. Although Boeing has not commented on this, Boeing's first-quarter financial report mentioned that 50 aircraft were scheduled for delivery to China by 2025, with 41 already produced or in production.

Boeing's Challenges and Response in the Chinese Market

Boeing's situation in the Chinese market has become increasingly challenging in recent years. In addition to high tariffs and policy risks caused by the trade war, the Boeing 737 MAX series experienced a trust crisis in China after two fatal crashes in 2019, becoming the first model to be completely grounded in China. In early 2025, Boeing came under regulatory scrutiny again due to structural issues, further affecting its reputation and sales in China.

According to Boeing CEO Kelly Ortberg, during the ban, Chinese airlines notified that they would not accept the 50 aircraft originally scheduled for delivery, with two already returned to the US. Boeing considered reselling these planes to markets like India, Malaysia, and Saudi Arabia, but the resale process proved challenging due to model configuration and customization needs.

Although the lifting of the ban offers Boeing a turning point, the delivery schedule remains unclear. The Chinese market is crucial for Boeing, accounting for a quarter of its global deliveries in 2018, and is expected to account for 20% of global aircraft demand over the next 20 years. Therefore, Boeing holds high expectations for reopening the Chinese market.

Market Reaction and Cautious Business Attitude

Boeing's stock price rose 1.7% in pre-market trading after the announcement, indicating a positive market reaction to the lifting of the ban. However, businesses remain cautious about the overall trade environment. Several US importers and manufacturers stated that the 90-day temporary agreement is insufficient to support long-term investment and supply chain planning.

For instance, WS Game Company, a board game company in Massachusetts, said it still has nine containers stranded in Chinese factories. Although shipments are expected after tariff reductions, production schedules have been delayed. A home decor company in Kentucky noted that 90% of its artificial flowers are sourced from China, and without suppliers resuming production, it cannot establish a stable pricing strategy.

Additionally, Boeing delivered only 350 commercial aircraft in 2024, a 33.7% drop from 2023. Although the delivery volume is expected to rebound to 570 in 2025, supply chain bottlenecks and tariff uncertainties may still affect production and delivery schedules.

Expert Opinion: Crisis Temporarily Eased, But Risks Remain

Although Boeing has temporarily escaped the delivery crisis, experts generally believe that the core issues of this trade war remain unresolved. Significant differences remain between the US and China on structural issues such as market access, industrial subsidies, and intellectual property. If a more concrete agreement cannot be reached within 90 days, punitive tariffs and bans may re-emerge.

Supply chain consultant Cameron Johnson pointed out, "This 90-day grace period helps retailers temporarily avoid a Christmas stockout crisis, but Father's Day and back-to-school sales cannot be recovered." He emphasized that businesses need a long-term stable policy environment rather than short-term policy fluctuations.

While Boeing has gained a short-term reprieve, its future in the Chinese market still depends on the progress of bilateral trade negotiations and policy stability. For this global aviation giant, lifting the ban is only a temporary victory, and the real challenges lie ahead.

References

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