#TradeWarEases
Yes, the reports are accurate. On May 12, 2025, the United States and China agreed to a 90-day truce in their ongoing trade war, significantly reducing tariffs on each other's goods. The U.S. will lower its tariffs on Chinese imports from 145% to 30%, while China will reduce its tariffs on U.S. goods from 125% to 10% .
This agreement was reached during negotiations in Geneva and aims to de-escalate tensions that have impacted global markets and supply chains. Both nations have also agreed to suspend or remove certain non-tariff measures and have established a mechanism for ongoing dialogue to prevent future escalations .
Financial markets responded positively to the news. The S&P 500 rose by 2.6%, the Dow Jones Industrial Average increased by 957 points (2.3%), and the Nasdaq gained 3.6% . Sectors such as apparel, travel, and retail saw significant gains, with companies like Lululemon, Nike, Carnival, and Amazon experiencing notable stock increases.
While President Trump has characterized this development as a victory and a "reset" in U.S.-China relations , some analysts view it as a strategic retreat prompted by economic pressures and market instability . The agreement is set to take effect on May 14, 2025, and will last for 90 days, during which further negotiations are expected to address remaining trade issues.
