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And while naked dressing is off the table for anyone walking the red carpet this year, here’s to more delightful beauty looks from Bella Hadid across the week of Cannes! On 12 May, in a joint statement, the US and China agreed to de-escalate their ongoing trade war: the Trump administration’s reciprocal tariffs on China will decrease from 145 per cent to 30 per cent; and China’s retaliatory tariffs on the US will fall from 125 to 10 per cent. These new percentages will remain in place until the end of the 90-day pause period, which is 10 August. The news follows a weekend of talks in Geneva, and, according to the statement, recognises “the importance of a sustainable, long-term and mutually beneficial economic and trade relationship” between the US and China. US stocks shot up on Monday morning following the announcement.Horse Not Only Does My Mind Wander Sometimes It Walks Off Shirt
The update puts US tariffs on China more in line with existing global levies. The European Union is currently subject to 10 per cent tariffs; Mexico and Canada tariffs are both 25 per cent; the UK is also subject to 25 per cent (save for non-fashion-related exemptions). Former tariff rates revealed on 2 April, ranging from an additional 10 to 50 per cent and targeting Asian manufacturing countries, are currently on pause until 8 July. Investors may be excited about the China pause, but for brand owners, it’s not all happy news as the looming 90-day deadlines mean more changes could come, adding to previous whiplash. But this does give brands some breathing room. “Honestly, [it’s] a mix of relief and frustration,” says Georgia Cherrie, co-founder of ready-to-wear brand Paris Georgia. “Relief because it offers a momentary breather, but frustration because it still feels like we’re all caught in a game, and businesses like ours are being squeezed in the middle. The uncertainty is exhausting, and it’s already pushing some brands to the brink.” “The pause is helpful to brands as it buys them more time and gives them more flexibility. However, it does not stop the uncertainty as there is still so much upheaval and chopping and changing in tariff policy — and the current change is only a pause,” says Neil Saunders, managing director of retail at market research firm Globaldata. “I expect most brands will still explore moving to a more balanced supply chain with less reliance on China. But some will now adopt a wait-and-see approach.”
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