The U.S. administration reducing tariffs on Chinese imports from a staggering 145% to 30% marked a significant breakthrough in the ongoing trade war. But, the average effective U.S. tariff rate still sits at 13%— and fundamental trade headwinds haven't disappeared.

In this episode of the 10-Minute Take, RBC's Economics Claire Fan and Carrie Freestone take you through how our forecasts for U.S. core inflation, consumer spending and growth have changed with the reduction of Chinese tariffs. They also tackle:

• How an unwinding of tariffs on Chinese imports will impact our outlooks for U.S. core inflation, consumer spending, and growth.

• How this policy shift factors into the U.S. Federal Reserve’s interest rate decisions for 2025.

• Whether Canada's economic outlook will be impacted by U.S.-China trade developments.