The US-China trade truce, effective May 2025, slashes tariffs reciprocally (US: 145%→30%; China: 125%→10%), easing costs for businesses and consumers. The 90-day pause, starting May 14, aims to negotiate lasting solutions, boosting market optimism. However, the WTO’s earlier forecast of a 0.2% global trade decline in 2025—or 1.5% if tensions worsened—reminds stakeholders of lingering risks. While the deal offers relief to sectors like tech and agriculture, challenges persist: domestic opposition, enforcement disputes, and unresolved issues like subsidies. Success hinges on addressing structural economic concerns within the truce window. Though a positive step, sustained cooperation is vital to stabilize fragile global supply chains and counter geopolitical uncertainties.
