#TradeWarEases

Global Markets Rally as U.S. and China Agree to Temporary Tariff Truce

In a significant de-escalation of trade tensions, the United States and China have agreed to a 90-day pause in their ongoing trade war, announcing substantial temporary reductions in tariffs. Effective May 14, 2025, the U.S. will lower its tariffs on Chinese imports from 145% to 30%, while China will decrease its tariffs on American goods from 125% to 10%.

This agreement, reached following talks in Switzerland, has been met with immediate positive reactions in global financial markets, with stock markets worldwide surging on the news. While the truce offers a window for further negotiations through an established mechanism, analysts remain cautious, noting the temporary nature of the relief and underlying unresolved issues.