#TradeWarEases The trade conflict between the United States and China is beginning to ease, marked by a major breakthrough in negotiations. Both countries have agreed to lower tariffs on each other's goods for an initial period of 90 days. The U.S. will reduce its tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on American products from 125% to 10%.
This temporary pause in hostilities offers much-needed relief to the global economy, which has been struggling under the strain of the prolonged trade dispute. The arrangement is expected to stimulate trade activity, alleviate congestion at ports, and lower costs for importers.
Markets responded with a surge of optimism—Dow futures climbed more than 2%, S&P 500 futures rose by nearly 3%, and the Hang Seng index in Hong Kong jumped over 3%.
Despite this encouraging progress, the trade war remains unresolved. The 90-day window brings a level of uncertainty, and businesses still require long-term policy clarity to effectively plan their supply chains and inventory management.
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