#USGovernment
On May 12, 2025, the United States and China announced a significant de-escalation in their ongoing trade war by agreeing to a 90-day pause and substantial tariff reductions. The U.S. will lower tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on U.S. goods from 125% to 10% .
This agreement, reached after high-level talks in Geneva, aims to facilitate further negotiations and prevent a trade embargo. Both nations emphasized their commitment to avoiding economic decoupling and promoting balanced trade .
The announcement led to a surge in global financial markets, with U.S. stock futures rising sharply and the dollar strengthening . However, economists caution that the suspension is temporary, urging sustained dialogue to prevent future disruptions .
While the deal marks a meaningful step towards resolving trade tensions, deep-rooted issues remain, and the next 90 days will be pivotal in shaping future U.S.-China economic relations .