#TradeWarEases As of today, May 12, 2025, significant developments have occurred in the U.S.-China trade relations, leading to a temporary easing of the trade war:
U.S.-China Agreement to Temporarily Slash Tariffs
The United States and China have reached an agreement to temporarily reduce reciprocal tariffs. This deal, which surpasses expectations, aims to alleviate economic pressures and restore some stability to global markets .
Under the agreement, U.S. tariffs on Chinese goods will be lowered to 30%, providing relief to industries affected by the trade tensions. In return, China has agreed to ease certain restrictions on U.S. exports, including semiconductors and agricultural products .
Ongoing Negotiations and Market Reactions
High-level negotiations between U.S. and Chinese officials are underway in Geneva, focusing on de-escalating trade tensions and establishing a framework for long-term cooperation . While the temporary tariff reductions are a positive step, analysts caution that underlying issues remain unresolved.
Financial markets have responded positively to the news, with major indices showing gains. The S&P 500 ETF (SPY) is currently trading at $564.59, reflecting a slight decrease of 0.08% from the previous close. The Invesco QQQ Trust (QQQ) is up by 0.28%, trading at $487.97. However, emerging market ETFs like EEM and VWO have seen minor declines of 0.02% and 0.18%, respectively.
These developments indicate a cautious optimism in the markets, with stakeholders awaiting further details from ongoing negotiations.