The United States and China have reached a historic agreement to ease trade tensions between them by reducing tariffs for 90 days, which marks a significant breakthrough in the trade war that has lasted for years and affected the global economy. Under the agreement, the United States will reduce its tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on American goods from 125% to 10%.

This temporary easing of trade restrictions came after high-level talks in Geneva, where the two countries agreed to give negotiations another chance with the aim of reaching a more sustainable comprehensive agreement. This announcement was widely welcomed by global markets, as stocks in Europe and Asia rose, oil prices recorded a notable jump, while gold prices fell and the value of the US dollar increased.

Despite the cautious optimism prevailing in the markets, experts warn that the current agreement does not resolve all the core issues such as intellectual property rights and government subsidies. Nevertheless, both Washington and Beijing expressed their desire to avoid economic separation and work towards building a balanced trade relationship.

This development provides some relief to the global economy and rekindles hope for a permanent resolution to the dispute.