#TradeWarEases 📉📈💥🚀
The U.S.-China trade war, a source of global economic tension since 2018, has shown signs of easing in May 2025, sparking optimism across markets. Recent high-level talks in Geneva between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng have led to a 90-day tariff truce, reducing U.S. duties on Chinese goods from 145% to 10% and China’s retaliatory tariffs from 125% to lower levels. This breakthrough, described by President Trump as a “total reset,” aims to de-escalate a conflict that disrupted nearly $600 billion in annual bilateral trade, frazzled financial markets, and raised fears of a global recession.
The truce follows weeks of economic strain, with Chinese exports to the U.S. plunging 21% in April and U.S. businesses facing supply chain chaos. Both nations, feeling the pinch—China with factory output at a 17-month low and the U.S. with a $295 billion trade deficit—sought an off-ramp. The talks, while not resolving systemic issues like intellectual property theft or fentanyl trade, signal mutual interest in stabilizing relations.
Global markets reacted strongly, with the S&P 500 soaring 9.5% and tech stocks like Apple and Tesla jumping over 7%. However, analysts remain cautious, warning that deep-seated frictions may persist beyond the truce. Southeast Asia, caught in the trade diversion crossfire, hopes for sustained de-escalation to avoid further economic fallout. #TradeWarEases reflects fragile hope, but the road to a lasting deal remains uncertain. #Write2Earn