#TradeWarEases : US-China Tariff Truce Signals Economic Thaw

In a notable shift in global trade dynamics, the United States and China have agreed to a temporary truce in their long-standing tariff war. After years of tit-for-tat trade barriers, both nations reached a consensus during talks in Geneva to significantly lower tariffs and reopen paths for negotiation.

Effective immediately, the U.S. will reduce tariffs on Chinese goods from 145% to 30%, while China will cut duties on American imports from 125% to 10%. This agreement marks the first major de-escalation since tensions escalated in the late 2010s over issues,including intellectual property rights, trade imbalances, and national security concerns.

The move has been welcomed by markets and international observers alike. Global stocks surged following the announcement, with major indices in the U.S., Europe, and Asia posting gains. Economists suggest this 90-day cooling-off period could pave the way for more permanent reforms if both sides continue to engage constructively.

While some remain cautious about the long-term resolution, this agreement is seen as a strategic win for diplomacy and global economic stability. Leaders from both countries emphasized a shared interest in avoiding a full-scale decoupling and reaffirmed their commitment to further dialogue.

As the world watches, the next three months will be critical. If successful, this truce could be a turning point in one of the most consequential economic disputes of the modern era.