#TradeWarEases Overview of the US-China Trade Agreement (2025)
1. Major Tariff Reductions:
The U.S. will reduce tariffs on Chinese goods from 145% to 30% over the next 90 days. In exchange, China will cut its tariffs on U.S. goods from 125% to 10%. (Source: Financial Times)
2. New Economic Dialogue Platform:
Both nations will launch a new economic dialogue mechanism to promote long-term cooperation and address structural trade issues. (Source: Reuters)
3. Positive Market Reaction:
Financial markets responded favorably:
S&P 500 futures rose 2.8%
U.S. dollar gained 0.7%
Gold prices fell 2.3%
(Source: Financial Times)
4. Background:
Earlier in 2025, the U.S. and China imposed steep tariffs amid escalating trade tensions. This agreement represents a pivotal step toward de-escalation and renewed economic collaboration
