#TradeWarEases #TradeWarEases

The recent trade agreement between the United States and China marks a positive turn in global economic tensions, as both powers decided to significantly reduce mutual tariffs during an initial 90-day period. Starting on May 14, 2025, the U.S. will reduce its tariffs on Chinese products from 145% to 30%, while China will do the same, reducing tariffs on American goods from 125% to 10%. This agreement, the result of high-level negotiations in Geneva, aims to curb the escalation of the trade war and establishes a permanent mechanism for bilateral dialogue. The truce has generated a positive reaction in financial markets: major stock indices such as the S&P 500 and Nasdaq rose, and sectors like technology and airlines experienced strong rebounds. The strengthening of the dollar and the drop in gold reflect the renewed optimism of investors in light of a more cooperative outlook between both economies. Although temporary, this tariff pause is interpreted as a significant step towards a broader negotiated solution.