#TradeWarEases TradeWarEases A significant de-escalation in the trade war between the United States and China has been announced following a successful round of negotiations held in Geneva. Here are the key points of the agreement:
Tariff reduction for 90 days:
The United States will reduce tariffs on Chinese goods from 145% to 30%.
China will reduce tariffs on American goods from 125% to 10%.
The aim of this step is to provide a time window for more in-depth and comprehensive negotiations.
Exemption of certain issues:
Tariffs related to fentanyl (a dangerous narcotic) were not included in this agreement and are still being negotiated separately.
Market reaction:
Global markets responded positively:
U.S. stock indices, such as the S&P 500 and Nasdaq, rose.
The U.S. dollar strengthened, as did yields on U.S. Treasury bonds.
Some analysts expressed conditional optimism, considering the agreement surprising and positive, but temporary.
Analysts' positions:
Some see this agreement as a genuine opportunity to repair trade relations, while others warn that it is merely a temporary truce, and tensions may return later if a final agreement is not reached.
This de-escalation gives both sides 90 days to attempt to resolve major trade disputes, but challenges remain, and the outcomes depend on what happens during this period.