#TradeWarEases : Key Highlights of the US-China Trade Agreement
Major Tariff Reductions:
The United States will reduce tariffs on Chinese imports from 145% to 30% over the next 90 days. In response, China will lower its tariffs on American goods from 125% to 10%. (Source: Financial Times)
Launch of Economic Dialogue Platform:
Both nations have agreed to establish a new economic dialogue mechanism aimed at fostering long-term cooperation and addressing deeper structural issues. (Source: Reuters)
Global Market Uplift:
Markets responded positively to the agreement. S&P 500 futures jumped 2.8%, the dollar gained 0.7%, and gold prices dropped by 2.3%. (Source: Financial Times)
Context:
Earlier in 2025, the U.S. imposed tariffs of up to 145% on Chinese products, prompting China to retaliate with tariffs reaching 125%. This sparked heightened trade tensions between the two economic powers.