#TradeWarEases US-China Trade Agreement: Executive Summary

1. Significant Tariff Reductions

In a decisive move to ease trade tensions, the United States will reduce tariffs on Chinese imports from 145% to 30% over the next 90 days. China, in response, will cut tariffs on American goods from 125% to 10%.

Source: Financial Times

2. Establishment of Economic Dialogue Mechanism

Both governments have agreed to launch a new economic dialogue platform. This forum aims to encourage long-term collaboration and address underlying structural economic issues between the two countries.

Source: Reuters

3. Market Reaction

Global markets responded favorably to the news. Key indicators showed:

S&P 500 futures rose by 2.8%

US dollar strengthened by 0.7%

Gold prices fell by 2.3%

Source: Financial Times

4. Background and Context

The agreement follows a period of heightened trade conflict that began in early 2025, during which the US imposed tariffs up to 145% on Chinese goods. China retaliated with tariffs reaching 125%, escalating economic tensions.