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President Donald Trump announced a new trade agreement with China this week, calling the years-long trade war "done."

Under the deal, the US will keep a steep 55% tariff on Chinese imports, while China will charge a 10% tariff on goods coming from the US. But many in the business world say the real problems aren't over.

"This deal might slow the fight, but it won't fix the damage," said Alan Baer, CEO of logistics company OL USA.

He warned that the high tariff rate will still hurt companies and could lead to job losses. "Very few companies can handle that kind of cost without passing it to the customer," he added.

According to USA Today, While President Trump shared the news on social media, calling it a "done deal," Chinese officials and White House aides said the agreement is only a framework and still needs final approval from both Trump and China's President Xi Jinping.

Some business leaders feel uneasy about the lack of clear terms. "A 55% tariff is too high for companies to go back to regular trade with China," said Bruce Kaminstein, founder of Casabella, a home products company.

He added, "This will raise prices or force businesses to cut costs—either way, families will feel it."

Clothing Prices May Rise, Retailers Warn After Trade Truce

The American Apparel and Footwear Association also raised concerns. CEO Steve Lamar said the deal might sound good, but it still means higher prices for clothes and shoes in the US, CNBC said.

"It's not a win for American shoppers," he said. "Especially with back-to-school and the holidays coming up."

Even though inflation has slowed a bit, there's still a lot of uncertainty. Many companies that import goods from China say they are waiting to see what really happens before placing more orders.

The trucking and shipping industries are also being affected. Dean Croke of DAT Freight & Analytics said that the pause in the trade war has helped in the short term, but the rest of the year looks tough. "It's hard for businesses to plan when everything can change with a tweet," he said.

Experts agree that unless a long-term deal is made, the supply chain won't fully recover. While rare earth trade and student visas are part of the new deal, most leaders believe that for businesses to feel secure again, tariff rates need to come down.

Tags

Donald Trump, China