#TradeWarEases USA and China Temporarily Reduce Tariffs

Today, May 12, 2025, the USA and China announced a significant easing of trade tensions, reaching an agreement for a 90-day reduction of tariffs.

📉 The USA will reduce tariffs on Chinese goods from 145% to 30%, and China will reduce tariffs on American imports from 125% to 10%.

🤝 The negotiations took place in Geneva with the participation of US Treasury Secretary Scott Bessent, Trade Representative Jamison Greer, and Chinese Vice Premier He Lifeng. The parties called the meetings 'productive' and 'constructive', noting a mutual desire to avoid an economic rupture and achieve a more balanced trade.

📈 Markets reacted positively: S&P 500 futures rose by 2.8%, the Chinese CSI 300 index increased by 0.6%, and gold prices fell by 2.3%.

⏳ Although the agreement is temporary, it could signal a turning point in the trade relations of the two largest economies in the world, which soured after the introduction of new tariffs by the Trump administration in April.

🔄 President Trump called the agreement a 'complete reset' of relations, while Chinese officials referred to it as an important step towards resolving the conflict.