In a major breakthrough on the US-China trade war front, both economic giants have agreed to significantly reduce tariffs for a 90-day trial period — a move sparking optimism across global markets.
Here’s what’s on the table:
US Tariffs on Chinese Imports: Slashed from a steep 145% to 30%. However, a 20% tariff introduced earlier in 2025 remains unchanged.
China’s Tariffs on US Goods: Dropped from 125% to just 10% over the same 90-day window.
This temporary agreement is designed to ease trade tensions, boost cross-border commerce, and lay the groundwork for deeper negotiations. China has also committed to suspending or removing non-tariff retaliatory measures introduced since April 2, 2025.
What This Means for the Markets:
Gold Prices Tank: Down more than 3% as investors pull back from safe-haven assets.
Stock Market Surge: US futures soar 2.5–3%, while Chinese indexes climb over 1%.
Oil Prices Spike: Crude jumps 2% to $62.50 amid expectations of stronger global demand.
Crypto Under Watch: Traders closely monitor BTCUSDT, WIFUSDT, and DOTUSDT for volatility.
While the agreement doesn’t resolve all outstanding trade issues, it signals a positive shift in US-China relations. The next few months will be crucial as investors watch for follow-through on trade policies and future economic cooperation.