#TradeWarEases #TradeWarEases The United States and China have agreed to a 90-day reduction in tariffs, marking a significant de-escalation of their ongoing trade war. This agreement, reached during high-level talks in Geneva, aims to ease economic tensions and reopen negotiations for a more permanent resolution.

Key details of the agreement

Tariff reductions: The United States will lower tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on American goods from 125% to 10%.

Duration: The tariff reductions are set to last for 90 days, providing a window for further negotiations.

Additional measures: China has also agreed to suspend or cancel other non-tariff trade measures, signaling a broader commitment to easing trade tensions.

Market reactions

The announcement had a positive impact on global financial markets:

Stock markets: Major indices, including the S&P 500, recorded gains.

Currencies and commodities: The US dollar strengthened, while gold prices fell, reflecting increased investor confidence.

Outlook

Although this agreement represents a significant step toward resolving trade tensions, it is a temporary measure. Both nations have expressed a desire to continue negotiations, aiming for a more comprehensive and sustainable trade agreement.