Maersk shares surge after partial tariff pause between China and the US
The Danish shipping giant Maersk rose by about 12 percent on the stock exchange Monday, after the US and China agreed to partially pause their trade war for 90 days.
Maersk – along with the rest of the transport sector – has been under pressure from the escalating trade war between the two countries over the past month.
There has been concern that the situation between the countries could lead to a decline in global trade.
There has been concern that the situation between the countries could lead to a decline in global trade.
Maersk: A step in the right direction
That’s why the decision by China and the US is a step in the right direction, Maersk said in a statement according to news agency Reuters.
- We hope this can lay a foundation for the parties to also reach a permanent agreement, which can help create the long-term predictability our customers need, the statement said.
The agreement between the US and China was announced early Monday morning Danish time in a joint statement, according to news agency AFP.
According to the Financial Times, the agreement means that tariffs on Chinese goods will be lowered to 30 percent from 145 percent, while China will reduce tariffs on imports of American goods to 10 percent from 125 percent.
Over the weekend, there were negotiations between China and the US about tariffs and trade, after Trump in the early months of his presidency increased tariffs on a number of countries.
Since early April, the US and China have alternately raised tariffs on each other’s goods.
The Americans had imposed a 145 percent tariff on goods from China. The Chinese responded with a retaliatory tariff of 125 percent on American goods.
Donald Trump’s argument for imposing tariffs on a wide range of countries is that, according to him, there is a trade deficit with them.
A tariff is an import tax levied on goods produced abroad.
The idea is that goods entering the US become more expensive, making Americans less likely to buy them.
In addition, by raising tariffs, Donald Trump wants to pressure foreign companies to produce their goods in the US and thereby create American jobs.
/ritzau/
