#TradeWarEases # Trade Agreement Between the United States and China: A New Economic Horizon

Global markets are at a crucial moment following the news of a preliminary trade agreement between the United States and China, reached after extensive negotiations in Geneva. Although specific details have yet to be revealed, a formal announcement is expected shortly.

## What We Know So Far

### Significant Progress

U.S. Treasury Secretary Scott Bessent, along with Trade Representative Jamieson Greer, have highlighted that talks with Chinese Vice Premier He Lifeng have resulted in "significant progress." This statement suggests a possible de-escalation in the trade tensions that have affected both nations.

### Expected Tariff Reduction

It has been reported that the U.S. may reduce tariffs imposed on Chinese imports, which in some cases have reached as high as 145%, to a more manageable range between 50% and 60%. Additionally, it is anticipated that China's retaliatory tariffs, which have been at 125% on U.S. products, will also be a topic of discussion within the framework of the agreement.

### Market Reactions

The expectation of an agreement has generated palpable optimism in global markets. Investors are showing confidence that the reduction of trade tensions will foster economic growth and stabilize international trade relations.