#TradeWarEases

As of May 12, 2025, the United States and China have agreed to a 90-day pause in their ongoing trade war, significantly reducing tariffs on each other's goods. This agreement, reached during high-level talks in Geneva, aims to de-escalate tensions that have impacted global markets.

President Donald Trump described the negotiations as a "total reset" in U.S.-China trade relations, highlighting substantial progress made during the discussions. Chinese Vice Premier He Lifeng confirmed the consensus to reduce tariffs and called for expanded cooperation between the two nations.

Market reactions have been positive, with global stocks and the U.S. dollar experiencing gains following the announcement. Additionally, gold prices have declined as investor concerns over the trade conflict have eased.

While this development marks a significant step towards resolving trade tensions, both sides acknowledge that further negotiations are necessary to address underlying issues. The 90-day period is intended to facilitate continued dialogue and the establishment of a more stable trade relationship.