#TradeWarEases

Overview of the US-China Trade Agreement....

Major Tariff Reductions:

In a significant move, the United States has agreed to reduce tariffs on Chinese goods from 145% to 30% over the next 90 days. In return, China will lower its tariffs on U.S. goods from 125% to just 10%. (Source: Financial Times)

2. New Economic Dialogue Platform:

Both countries will establish a new economic dialogue mechanism aimed at fostering long-term cooperation and addressing deep-rooted structural issues in their trade relationship. (Source: Reuters)

3. Positive Market Response:

Global financial markets reacted positively to the news. S&P 500 futures rose by 2.8%, the U.S. dollar strengthened by 0.7%, and gold prices declined by 2.3%. (Source: Financial Times)

4. Background Context:

Earlier in 2025, the U.S. had raised tariffs on Chinese imports to as high as 145%. China responded with its own tariffs of up to 125% on American goods, escalating trade tensions. This agreement marks a turning point in efforts to ease the conflict.