#TradeWarEases The US-China trade war has shown signs of easing after high-stakes tariff talks in Geneva. The two nations agreed to slash tariffs on each other's goods for 90 days, marking a significant breakthrough. Here's a breakdown of the deal¹ ²:
- *US Tariffs on Chinese Imports*: Reduced to 30% from 145%
- *Chinese Levies on US Imports*: Cut to 10% from 125%
- *Joint Statement*: Both countries recognize the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship
- *Future Discussions*: The US and China will establish a mechanism to continue discussions on economic and trade relations
*Market Impact*
- The US dollar and Chinese yuan have risen after the trade deal announcement
- The benchmark S&P 500 stock index has erased steep losses seen after the tariffs announcement on April 2³
*Expert Insights*
- Analysts view the Geneva dialogue as a small but critical step towards de-escalation
- Expectations for a breakthrough remain low, but both Washington and Beijing are under pressure to scale back tit-for-tat levies
- The relationship between the US and China is complex, with trade-prohibitive tariffs going in both directions
*Challenges Ahead*
- The US won't ease tariffs unilaterally; China needs to make concessions as well
- China refuses to lower tariffs unless the US moves first
- The trade war's roots trace back to Trump's first term, with the US accusing China of unfair trade practices