#TradeWarEases

The US-China trade war seems to be easing, with recent high-stakes tariff talks in Geneva showing promising results. Here's what's happening¹ ² ³:

- *Tariff Reduction*: The US will reduce tariffs on Chinese goods from 145% to 30% for a 90-day period, while China will lower its levies on American imports from 125% to 10%.

- *Economic and Trade Consultation Mechanism*: Both countries have agreed to establish a mechanism to maintain communication on their respective concerns in the economic and trade fields.

- *Market Reaction*: Stock markets responded positively to the news, with S&P 500 futures gaining 1.1-1.4% and Nasdaq futures rising 1.4-1.9% in early trading.

While the agreement seems like a step in the right direction, investors remain cautiously optimistic, recognizing that the 90-day window underscores the provisional nature of the deal. The White House is expected to release more details through a joint statement, which markets will scrutinize closely for clarity on next steps.