#TradeWarEases

U.S. and China Agree to 90-Day Tariff Reduction, Easing Trade Tensions

On May 12, 2025, the United States and China announced a 90-day agreement to significantly reduce tariffs, aiming to de-escalate ongoing trade tensions. The U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on the U.S. goods from 125% to 10%. This temporary reprieve, established during talks in Geneva, is intended to facilitate further negotiations on broader trade issues. The announcement led to a surge in global markets, with major indices and stocks in sectors like technology and retail experiencing notable gains. Both nations have committed to continued dialogue, but analysts caution that underlying structural concerns remain unresolved.