#TradeWarEases

#TradeWarEases – Article

On May 12, 2025, the United States and China reached a significant agreement to ease their long-standing trade tensions. This truce, marked by the hashtag #TradeWarEases, includes a 90-day suspension of most tariffs that had been imposed over recent months.

Key Points:

U.S. tariffs on Chinese goods have been reduced from 145% to 30%.

China’s tariffs on U.S. goods have dropped from 125% to 10%.

The goal is to prevent a trade embargo and move toward balanced trade.

Both sides reaffirmed their commitment to continued cooperation and avoiding economic decoupling.

The announcement led to a positive reaction in global markets, with investors optimistic about improved international trade stability. However, economists have warned that this is a temporary suspension, and further negotiations are needed to reach a lasting resolution.

Additional Measures:

A new trade consultation mechanism is being established.

Tariffs on fentanyl-related goods remain in place.

Both sides are focusing on mutual benefit and preventing future escalations.

This agreement has been hailed as a step forward in restoring confidence between the two largest economies in the world.