The trade agreement between the US and China marks a dramatic volte-face after weeks of simmering tensions. But don’t expect an equally breathtaking about turn from US consumers. Amid the uncertainty about economic growth, job cuts and inflation, it will take time for shoppers to regain their confidence. Even if they do, there are some reasons why the pain for retailers and consumer goods groups may be prolonged.
Monday’s announcement means the combined 145% US levies on most Chinese imports will decline to 30% by May 14. The new, lower rate is still unhelpful, but it’s a lot better than the threatened levy, which would have ...