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6It appears there has been a significant development in the trade relations between the United States and China. Here's a breakdown of the situation:

Key Developments:

* Temporary Tariff Reduction: The United States and China have agreed to temporarily reduce some of the tariffs imposed on each other's goods for an initial period of 90 days. This decision came after two days of trade talks held in Geneva, Switzerland.

* Significant Rollback: The U.S. will suspend a substantial portion (24 percentage points) of its additional tariffs on Chinese goods, bringing the rate down to 30%. Similarly, China will reduce its tariffs on U.S. goods by a similar amount, resulting in a 10% tariff rate on both sides for the specified period.

* "Total Reset" Mentioned: U.S. President Donald Trump indicated that the talks were very productive and suggested a "total reset" of the trade situation was being negotiated.

* Continued Negotiations: Both countries have emphasized the importance of their economic and trade relationship and have committed to continued communication and cooperation to address their concerns. They have also agreed to establish a consultation mechanism for ongoing discussions.

* Market Response: Global stock markets reacted positively to this news, with surges in Asia, Europe, and the U.S. The U.S. dollar also saw gains.

Impact of Easing Trade Tensions:

* Positive for Global Economy: The move is being welcomed by international organizations like the United Nations as a very positive development for the global economy, as the trade war had been fueling fears of a global recession.

* Relief for Businesses: Companies on both sides that rely on U.S.-China trade are likely to experience relief as the high tariffs had disrupted supply chains and trade flows.

* Potential for Increased Trade: The temporary tariff cuts might encourage companies to resume or increase shipments during this 90-day window.