#TradeWarEases

As of May 2025, the U.S. and China have agreed to a 90-day pause on their trade war, reducing tariffs significantly—U.S. tariffs on Chinese goods drop from 145% to 30%, and China’s on U.S. goods from 125% to 10%. They also created a permanent consultation mechanism to improve dialogue and prevent future conflicts. This de-escalation follows years of tariff escalations and retaliations that began under President Trump and disrupted global trade. Markets have reacted positively, but tensions and strategic competition between the two countries remain.