#TradeWarEases
A Look at the New US-China Trade Agreement
The United States and China have reached a major breakthrough in their ongoing trade negotiations. As part of the new deal, the U.S. will significantly lower tariffs on Chinese imports—from a steep 145% down to 30%—over the next 90 days. In return, China will slash tariffs on American goods from 125% to just 10%, according to the Financial Times.
In addition to these tariff cuts, both nations have agreed to create a new economic dialogue platform. This mechanism is aimed at encouraging long-term cooperation and tackling deeper structural challenges in their trade relationship, Reuters reports.
The announcement sparked a wave of optimism across global markets. Following the news, S&P 500 futures jumped 2.8%, the U.S. dollar gained 0.7%, and gold prices dipped by 2.3%—a sign that investors are feeling more confident, according to the Financial Times.
This agreement comes after a period of intense trade friction. Earlier in 2025, the U.S. imposed tariffs as high as 145% on Chinese products. China responded in kind, hitting American goods with tariffs up to 125%. The new deal marks a major step toward easing those tensions and rebuilding economic trust between the two countries.
