JAKARTA – Although the United States and China have agreed to reduce their respective import tariffs to 30% and 10% over the next 90 days, US economists and Wall Street players are urging caution over the lingering effects of American tariffs.

Roger Altman, founder of investment firm Evercore, noted that despite the temporary suspension of reciprocal tariffs, US import duties on Chinese goods remain higher than during President Biden’s term—around 14%—compared to the 3–4% rate under his administration.

“It's encouraging. It's very encouraging. But it's preliminary,” Altman said, cited from Business Insider.

He stressed that the US and China still need to negotiate a more permanent economic and tariff framework during the 90-day window, leaving markets in a state of uncertainty.

"That will still be a drag, when we all know what tariffs do. As Chairman Powell said, they raise prices, reduce consumption, raise inflation." Altman said.

Echoing Altman’s concerns, Federal Reserve Board Governor Adriana Kugler projected that the overall higher level of US import tariffs would make it harder to curb inflation while also dampening economic productivity.

Kugler predicted that this environment could slow US economic growth below the 2.5% rate recorded last year. (ZH)