Trade War Eases 💥🚀
The U.S. and China Reduce Tariffs: Trade Truce Boosts Global Markets
On May 12, 2025, the United States and China agreed to a mutual reduction of tariffs for 90 days, marking a significant pause in their prolonged trade war.
This agreement, announced after negotiations in Geneva between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, stipulates that the U.S. will reduce its tariffs on Chinese products from 145% to 30%, while China will decrease its tariffs from 125% to 10%.
The news triggered a positive reaction in financial markets: the Dow Jones rose by 1,044 points (2.5%), the S&P 500 increased by 2.9%, and the Nasdaq climbed by 4%.
Tech and retail companies, such as Apple and Amazon, experienced significant increases in their stock prices.
Although the tariff reduction is temporary, analysts view this step as a sign of improvement in bilateral relations and an opportunity to continue negotiations towards a more permanent agreement.