On May 12, #贸易战缓和 2025, China and the United States jointly announced a significant agreement in Geneva, Switzerland, bringing a notable easing of the trade war that had persisted for years. According to the 'Joint Statement of the China-U.S. Geneva Economic and Trade Talks,' both sides agreed to suspend certain tariffs imposed on each other's goods for 90 days, with an overall reduction exceeding 100%. This breakthrough is of great significance, marking the first substantive easing of economic and trade relations between China and the U.S. through high-level dialogue since the trade war broke out in 2018, injecting a strong boost to the global economic recovery.

The U.S. will suspend the 24% tariff imposed on Chinese goods in the executive order dated April 2, 2025, retaining only the remaining 10% tariff and canceling the additional tariffs imposed in two executive orders on April 8 and 9. China will also suspend the 24% retaliatory tariff on U.S. goods, retaining 10%, while canceling previous non-tariff restrictions on U.S. agricultural products, automobiles, and other sectors. In addition, both sides agreed to establish a mechanism for ongoing consultations, possibly further adjusting the remaining 10% tariffs in the future.

After the announcement, global capital markets responded positively. The A-share export recovery sector led the rise, with the Shanghai Composite Index approaching 3400 points; the U.S. Dow Jones Index rose by 1.4%, and tech stocks performed strongly. The offshore yuan appreciated by 1% over the week, while prices of safe-haven assets such as gold and Bitcoin corrected. Industries such as photovoltaics, semiconductors, consumer electronics, and cross-border e-commerce are expected to welcome new opportunities.

However, the deep-seated contradictions between China and the U.S. have not been completely eliminated due to this adjustment in tariffs; issues such as technological competition and supply chain restructuring still exist. The negotiation window over the next 90 days is crucial, as both sides need to engage in in-depth discussions on remaining tariffs, intellectual property, technology transfer, and other topics. If differences intensify, tariffs may again become a focal point of conflict. Nevertheless, this agreement provides short-term certainty for the global economy and clarifies a new direction for subsequent cooperation and competition.