#TradeWarEases

U.S.-China Geneva Trade Talks Achieve Major Breakthrough

Recent high-level trade talks between the United States and China in Geneva have resulted in a significant breakthrough. Both countries agreed to roll back 91% of newly imposed tariffs. The U.S. will reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on U.S. imports from 125% to 10% for an initial 90-day period. Additionally, a new economic and trade consultation mechanism will be established to address issues like intellectual property, subsidies, and trade imbalances.

Global markets reacted positively, with sharp gains across Europe, Asia, and U.S. stock futures. Analysts view the deal as a step towards easing trade tensions, though underlying disputes remain unresolved. The forthcoming joint statement on May 12 will formalize the tariff reductions, detail the consultation mechanism, and reaffirm the commitment to continued dialogue.

While the agreement offers immediate relief, experts caution it represents a temporary pause, not a final resolution. However, it provides a foundation for future negotiations and reduces global economic uncertainty.