#TradeWarEases The hashtag #TradeWarEases is trending following a significant development in U.S.-China trade relations. On May 12, 2025, both nations agreed to a 90-day reduction in tariffs, marking a notable de-escalation in their ongoing trade tensions.
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š Tariff Reductions Announced
United States: Tariffs on Chinese imports will decrease from 145% to 30%.
China: Tariffs on U.S. goods will be reduced from 125% to 10%.
This agreement, reached during talks in Geneva between U.S. Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng, aims to provide a temporary reprieve while both sides continue negotiations for a more comprehensive trade deal.
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š Market Reactions
The announcement had an immediate positive impact on global financial markets:
Dow Jones Industrial Average: Surged by 1,160 points (2.8%).
S&P 500: Increased by 3.3%.
Nasdaq: Rose by 4.4%.
These gains represent the largest single-day increases since April 9, 2025.
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š£ļø Official Statements
President Donald Trump described the agreement as a "total reset" in U.S.-China relations, emphasizing the potential for a more stable economic partnership.
Treasury Secretary Bessent highlighted the productivity of the discussions and indicated that both countries are committed to avoiding economic decoupling.
ā ļø Ongoing Considerations
While the tariff reductions are a positive step, certain tariffs remain in place, including a 20% U.S. tariff related to fentanyl imports from China.
Economists caution that this agreement is a temporary measure and that underlying trade issues between the two nations remain unresolved.
