#TradeWarEases

The United States and China reached a significant agreement to de-escalate their ongoing trade war. During high-level talks in Geneva, both nations consented to a 90-day reduction in tariffs: the U.S. will lower tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on American imports from 125% to 10%.

This temporary truce aims to provide a window for further negotiations toward a comprehensive trade agreement. While the tariff reductions are substantial, they are not permanent, and certain contentious issues, such as fentanyl-related measures and sector-specific tariffs, remain under separate discussions.

The announcement has positively impacted global financial markets. U.S. stock futures and Asian equities experienced significant gains, with sectors like automotive and mining notably benefiting. Commodity prices, including oil and iron ore, also rose in response to the news .

Despite this progress, experts caution that the underlying tensions between the U.S. and China persist. The 90-day period is seen as an opportunity to work toward a more permanent resolution, but the path forward will require addressing deeper structural issues in the bilateral relationship. #TradeStories