#TradeWarEases U.S. and China Announce 90-Day Truce
On May 12, 2025, the United States and China agreed to a 90-day truce in their ongoing trade war. U.S. tariffs on Chinese imports will drop from 145% to 30%, while China will reduce its tariffs from 125% to 10%.
President Donald Trump called it a “total reset,” emphasizing China’s commitment to opening its market to American businesses. Both sides signaled a desire to avoid further economic conflict and to work toward a long-term deal.
Markets responded positively: the S&P 500 and Dow surged, and the yuan hit a 6-month high. Still, experts warn that core disputes remain unresolved.
Next round of talks is expected in the coming weeks
