#TradeWarEases

On May 12, 2025, the United States and China announced a significant de-escalation in their ongoing trade war by agreeing to a 90-day mutual reduction of tariffs. This temporary truce aims to ease tensions and pave the way for more comprehensive trade negotiations.

Under the agreement, the U.S. will lower tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on American imports from 125% to 10% . This substantial rollback has been welcomed by global markets, with major indices experiencing significant gains. For instance, the Dow Jones Industrial Average surged by over 1,000 points, and technology stocks like Apple and Amazon saw notable increases .

While this agreement offers temporary relief, analysts caution that many underlying issues remain unresolved. The 90-day period is intended to facilitate further discussions aimed at achieving a more permanent resolution to the trade disputes. Both nations have expressed optimism about reaching a comprehensive deal, but the outcome remains uncertain .

This development marks a hopeful step toward stabilizing global trade relations and mitigating the economic disruptions caused by the prolonged trade conflict.