#TradeWarEases

US-China Trade Agreement Signals Major De-escalation

1. Significant Tariff Reductions:

In a landmark development, the United States will gradually lower tariffs on Chinese imports from 145% to 30% over the next 90 days. In exchange, China has committed to reducing its tariffs on U.S. goods from 125% to 10%. (Source: Financial Times)

2. Launch of a New Economic Dialogue Platform:

To promote sustained cooperation and address long-standing trade issues, both nations will establish a new economic dialogue mechanism. This platform is intended to facilitate ongoing discussions and reduce future tensions. (Source: Reuters)

3. Markets Respond Positively:

Global markets welcomed the agreement. S&P 500 futures jumped 2.8%, the U.S. dollar gained 0.7%, and gold prices dropped by 2.3%, reflecting renewed investor confidence. (Source: Financial Times)

4. Context and Significance:

Earlier in 2025, trade relations had sharply deteriorated, with the U.S. imposing tariffs of up to 145% on Chinese goods and China retaliating with tariffs as high as 125%. This new agreement represents a pivotal step toward stabilizing economic ties and easing trade tensions.