On May 12, 2025, the United States and China reached a trade agreement in Geneva, announcing significant tariff reductions: the U.S. will lower tariffs on China from 145% to 30%, while China will reduce tariffs from 125% to 10%, and a 90-day consultation mechanism will be established. This easing is due to economic pressures on both sides—rising inflation in the U.S. and market volatility, while China needs to stabilize its export market. The agreement has propelled a rebound in global markets, with Hong Kong stocks rising 3% in a single day and U.S. stock index futures surging over 3%. Although tariffs have not been completely eliminated, the phased truce creates a window for supply chain restoration and climate cooperation, laying the groundwork for future negotiations. The effectiveness of the upcoming 90-day consultations will determine the long-term direction, as both countries need to seek balance on deeper conflicts such as technology controls and industrial policies.