"Everyone is frozen in anticipation." Analyst on truce in USA-China tariff war

The U.S. and China have declared a truce in their tariff war, it will last 90 days. The agreement was reached at talks in Switzerland.

For this period, Beijing is reducing import duties on U.S. goods to 10 percent, while Washington will impose a 30 percent tariff on Chinese goods. This gives time to find long-term solutions that can stop the trade war.

What this may mean for the economies of the two countries and for the whole world, analyst Yulia Abukhovich told in the studio of First Information Channel.

This agreement for 90 days, the expert called a breathing space. "Everyone has frozen in anticipation, because recently, after Trump came to power, the world has been feverish. One says that the globalized world is falling apart, and indeed, at least, it has already given quite a serious crack. And it is hard to believe in this 90-day respite, it is not that they are harboring in hope, but on the contrary, they are trying to buy, trying to purchase goods on which they can later again impose huge duties. The markets have frozen. There was no collapse, but they are already reacting more positively. Consumers are breathing a sigh of relief because finally they will be able to buy goods at the prices they are used to. The world is frozen because it doesn't know what will happen next."

At the same time, the expert noted that none of Trump's promises have been followed through on till the end.

"It's a respite. And it is good if it ends. They (the U.S. and China - Editor's note) will work out a negotiating policy, will run negotiations and will work out a supposedly mutually convenient policy," Abukhovich said. - We really hope that it will be like that, because these are the strongest economies in the world, we understand it very well. And depending on how they interact with each other, all other economies will develop accordingly."