#TradeWarEases

On May 12, 2025, the United States and China announced a temporary trade truce lasting 90 days, which includes significant tariff reductions. Washington reduced tariffs on Chinese goods from 145% to 30%, while Beijing lowered tariffs on American products from 125% to 10%.

This agreement came after intensive negotiations in Geneva and was seen as a step toward easing trade tensions that negatively impacted the global economy. Financial markets responded positively; the Dow Jones index rose by more than 1000 points, and shares of technology companies like Apple and Amazon surged.

The agreement also includes the establishment of a permanent dialogue mechanism to avoid escalating disputes in the future. Although the agreement is temporary, it is considered an indication of the potential for a lasting settlement. Nevertheless, some tariffs remain in place, particularly those related to steel and aluminum, indicating that the road to a comprehensive solution is still long.