#TradeWarEases 🌱🍀 #TradeWarEases Substantial progress in US-China negotiations: a relief for global markets

The United States and China have concluded two days of intense trade negotiations in Geneva, achieving "substantial progress" to ease the tariff tensions that have shaken the global economy.

This advancement, announced on May 11, 2025, includes the establishment of an economic and trade consultation mechanism, with a joint statement expected on May 12.

This development is a positive sign for global markets, which have faced uncertainty due to tariffs of up to 145% from the US and 125% from China.

The temporary reduction of these tariffs (to 30% and 10%, respectively) for 90 days has boosted stock markets, with gains in Wall Street and Asia. Analysts suggest that this reprieve could stabilize supply chains and foster more predictable global growth, although caution remains about the sustainability of the agreement.

In terms of trade policies, the consultation mechanism could lay the groundwork for multilateral negotiations under the WTO, promoting reforms and benefiting vulnerable economies.

However, the US's protectionist stance and China's resistance to unilateral concessions could complicate the path to a lasting agreement.