#TradeWarEases The trade war between the US and China seems to be easing up, with both countries agreeing to lower import tariffs on each other's goods. Here's a breakdown of the recent developments¹:

- *Tariff Reductions*: The US will slash tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on US goods from 125% to 10%. These changes are expected to take effect on May 14, 2025.

- *Trade Deficit*: The US aims to reduce its trade deficit with China by $1.2 trillion. The new agreement might help achieve this goal.

- *New Consultation Mechanism*: Both countries have agreed to establish a new consultation mechanism to address trade and economic issues. Details of this platform are yet to be finalized.

- *Economic Impact*: The trade war has had significant effects on both economies, with China's exports to the US declining 21% year-over-year. However, Chinese companies have managed to boost sales in other markets, such as India and Southeast Asia.

These developments come after a series of escalating tariffs and trade tensions between the two nations. The agreement signals a potential shift towards easing trade relations, but its long-term impact remains to be seen.