#TradeWarEases U.S. and China Announce 90-Day Truce

On May 12, 2025, the United States and China reached a 90-day truce in their prolonged trade dispute. Under the agreement, the U.S. will reduce tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on American goods from 125% to 10%.

President Donald $TRUMP p described the move as a “total reset,” citing China’s renewed commitment to opening its market to U.S. businesses. Both sides emphasized a mutual interest in de-escalating tensions and pursuing a more comprehensive long-term agreement.

Financial markets responded positively to the announcement. The S&P 500 and Dow Jones Industrial Average both posted significant gains, and China’s yuan strengthened to a six-month high. Despite the optimism, analys