On May 12, 2025, the United States and China announced a tariff reduction agreement within 90 days, marking a step forward in the tense trade war. The U.S. lowered the import tariff on Chinese goods from 145% to 30%, while China reduced tariffs on U.S. goods from 125% to 10%. The agreement, following negotiations in Geneva, brings hope of easing economic conflict, but analysts warn that instability still lurks.

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