#TradeWarEases

Trade War Eases: A Look at the US-China Trade Agreement

1. Major Tariff Reductions

In a landmark decision, the U.S. will slash tariffs on Chinese imports from 145% to 30% over the next 90 days. In response, China will reduce its tariffs on U.S. products from 125% to 10%.

(Source: Financial Times)

2. Launch of New Economic Dialogue

The two nations have agreed to create a new economic dialogue framework designed to promote long-term cooperation and address structural challenges in their trade relations.

(Source: Reuters)

3. Markets React Favorably

Global markets responded with optimism: S&P 500 futures climbed 2.8%, the U.S. dollar gained 0.7%, and gold prices fell by 2.3%.

(Source: Financial Times)

4. Background

Earlier in 2025, the U.S. had imposed tariffs of up to 145% on Chinese goods, prompting China to retaliate with duties reaching 125% on U.S. imports. This new agreement signals a significant step toward de-escalation.