US-China tariff deal eases risks, Budget 2025 remains tight

Markets were relieved by the 90-day deal. (Image: Getty)

Wed, 14 May 2025

The de-escalation of the global trade war won’t change Budget 2025 but does mean the downside risks have eased. Markets breathed a sigh of relief after news that for a 90-day period, the US will lower its tariffs on goods from China from 145% to 30% while China will drop its tariffs on US goods to 10% from 125%. Against that backdrop, “the forecasts will still look pretty weak, but at least the risk of them being dire has lessened”, said Kiwibank chief economist Jarrod Kerr. “We’re still crawling out...

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