Big reductions in tariffs: Reports indicate that the United States has agreed to reduce tariffs on Chinese goods from 145% to 30% over the next ninety days. In response, China will lower its tariffs on American goods from 125% to just 10% during the same period.
"Complete reset": President Trump described these talks as a "complete reset" in the relationship.
New consultation mechanism: The two countries will work to establish a new economic and trade consultation mechanism to continue discussions.
Suspension of countermeasures: China will also suspend or remove the non-tariff countermeasures it previously imposed.
Market reaction: Global stock markets and the U.S. dollar rose following this news, while gold prices fell. This indicates positive sentiment among investors.
Impact and analysis:
De-escalation: This represents a significant de-escalation in the long-standing trade war between the two largest economies.
Boosting global markets: Easing tensions could spark a rally in global markets and enhance market confidence.
Positive investor sentiment: The agreement has led to positive sentiment among investors and increased institutional interest, even contributing to upward momentum in the cryptocurrency market.