#TradeWarEases TradeWarEases Summary of the US-China Trade Agreement

Important Reduction of Tariffs: The US agrees to lower tariffs on Chinese products from 145% to 30% within the next 90 days. China also agrees to reduce tariffs on US goods from 125% to 10%. Financial Times

Establishment of Economic Dialogue Mechanism: Both of the parties now want to create a new forum for their dialogue focused on meeting cooperation goals and dealing with cooperation's fundamental problems. Reuters

Market Moving in Positive Direction: After the announcement of the deal, the world market reacts bullishly. S&P 500 futures grew by 2.8% while the dollar appreciates 0.7% and the price of gold drops by 2.3%. Financial Times.

Historical Overview of Agreement: Earlier, China had to deal with about 145% tariffs on its goods imposed by the US in the early 2025, while China responded with up to 125% tariffs on US goods, thus increasing the level of the trade war between the two economies.