#TradeWarEases USA and China Temporarily Reduce Tariffs

Today, May 12, 2025, the USA and China announced a significant easing of trade tensions, reaching an agreement for a 90-day reduction in tariffs.

📉 The USA will reduce tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on American imports from 125% to 10%.

🤝 The negotiations took place in Geneva with the participation of US Treasury Secretary Scott Bessent and Trade Representative Jamison Greer, as well as Chinese Vice Premier He Lifeng. The parties described the meetings as "productive" and "constructive," noting a shared commitment to avoid an economic rupture and to achieve more balanced trade.

📈 Markets reacted positively: futures on the S&P 500 rose by 2.8%, the Chinese CSI 300 index rose by 0.6%, and gold decreased in price by 2.3%.

⏳ Although the agreement is temporary, it could signify a turnaround in the trade relations between the two largest economies in the world, which were strained after the introduction of new tariffs by the Trump administration in April.

🔄 President Trump called the agreement a "complete reboot" of relations, while Chinese officials referred to it as an important step toward resolving the conflict.