The negative impacts of the Trump administration’s trade war continue to unfold. According to data from Yale University, the average effective tariff rate borne by U.S. consumers has reached 18.3%, a new high since 1934. American households are projected to face an additional annual expenditure of $2,400 in 2025. The apparel industry has been hit the hardest: shoe and clothing prices may rise by 40% and 38% respectively in the short term, and remain 19% and 17% higher than current levels in the long run.

Economic indicators are showing concurrent pressure: U.S. core inflation rose to 3.1% in July, far exceeding the 2% target; the non-manufacturing PMI dropped to 50.1, approaching stagnation. Industries have directly pointed out that tariffs are driving up costs and acting as a catalyst for inflation.

Against this backdrop, China and the United States announced on August 12 a mutual 90-day suspension of the 24% reciprocal tariffs, retaining only the 10% tariffs. This truce measure eases the pressure of tariff escalation, provides phased support for alleviating inflation and stabilizing trade expectations, and injects buffer space into the pressured economy.