#TradeWarEases

*Major Tariff Reductions*: The US will reduce tariffs on Chinese goods from 145% to 30% over the next 90 days. In return, China will lower its tariffs on US goods from 125% to 10%. However, the provided information seems inconsistent with the actual timeline and details of the trade war. According to recent developments, the US imposed a 145% tariff on Chinese goods and China responded with a 125% tariff on American goods in 2025, under the second Trump administration.

- *New Economic Dialogue Platform*: The two countries will establish a new economic dialogue mechanism to foster long-term cooperation and address deep-rooted structural issues in their trade relationship.

- *Positive Market Response*: Global financial markets reacted positively to the news, with:

- *S&P 500 Futures*: Rising by 2.8%

- *US Dollar*: Strengthening by 0.7%

- *Gold Prices*: Declining by 2.3%

The background context is that the US and China have been engaged in an ongoing trade war since 2018, with escalating tariffs and trade tensions. The recent agreement seems to mark a turning point in efforts to ease the conflict .