PALM BEACH COUNTY, Fla. — A significant pause has been declared in the ongoing trade war between the United States and China, the two largest economic powers in the world.
This break in escalating tensions has sparked a glimmer of hope for consumers who have been grappling with rising prices due to tariffs.
WATCH BELOW: US and China agree to pause tariffs for 90 days
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As part of this temporary truce, tariffs on items imported from China into the U.S. will decrease from an alarming 145% to a more manageable 30%.
Although this reduction is good news, there are still concerns about how long it will last, as these fees ultimately impact consumers directly.
The toy industry has been hit hard by these tariffs, and the recent suspension of the steep increase is providing critical relief.
Jim Arpe, owner of Learning Express Toy Store in Palm Beach Gardens, expressed his gratitude for this temporary reprieve.
“It’s a gift; we were going to raise our prices, and now we won’t have to,” he said when asked about the 90-day window the pause provides.
With 90% of his inventory imported from China, Arpe is keen to take full advantage of this opportunity by ordering as many toys as possible.
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The tariff rollback means that a popular dinosaur toy expected to cost $48.97 with 145% tariffs could now be priced at just $25.99, while a kitchen toy previously anticipated to retail for $134.73 could drop to approximately $71.49.
While the current situation offers some immediate relief, the longer-term outlook remains uncertain.
“I hope that we settle on some reasonable tariffs, if we have to have tariffs,” said Arpe, expressing a desire for stability in pricing.
As discussions about the future of these tariffs continue, economic and financial expert Keith Singer weighed in on the potential for extension of this pause.
“Everything is a negotiation. I feel like if the Trump administration can get some concessions, they’ll be happy to call it a win and move on,” he commented.
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Singer is the managing director with Singer Weatlh Advisors highlighting that stock market performance is likely to influence decisions regarding tariffs. Following a decline last month, which reflected concerns about the economic impact of sustained tariffs, the market is beginning to adjust its expectations.
“Now the market is pricing in the fact that I believe there won’t be a major tariff war that will have an adverse impact on the economy,” Singer added.
Beyond tariffs, Singer said there's very high valuations in the stock market right now and suggests investors, looking to fuel their retirement, should look at alternatives from the stock market such as private credit funds, private mortgages, infrastructure funds and other investments that are not correlated to the economy.
"Goldman Sachs came out with their 10-year predictions of stocks and because the valuations are so high relative to earnings, they're predicting only a 3% annual return in the next decade, and JP Morgan is predicting 6%," said Singer. " So those are not good numbers if we only make 3 to 4% in the next 10 years, a lot of people who are relying on the stock market to fund their retirement are gonna be in not good shape."
