#TradeWarEases Summary of #TradeWarEases (May 2025)

The United States and China have reached a major agreement to de-escalate their trade war. The two countries have agreed to significantly reduce their tariffs over a 90-day period:

United States: tariff reduction from 145% to 30%

China: reduction from 125% to 10%

Immediate effects:

Financial markets reacted strongly upward (3.5% increase in S&P 500 and Nasdaq futures)

The dollar strengthened, and U.S. bond yields increased

Crude oil prices rose (WTI at $62.68, Brent at $65.55)

Reactions:

Analysts welcome a truce better than expected

Others remain cautious, highlighting the temporary nature of the agreement and ongoing uncertainties

Next steps:

The truce opens a window to negotiate a more comprehensive agreement

Other sensitive issues (such as fentanyl or certain key sectors) remain unresolved

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