#TradeWarEases
The US-China trade war has eased with both countries agreeing to slash tariffs on each other's goods for 90 days. Here's a breakdown of the deal¹:
- *Tariff Reductions*:
- US tariffs on Chinese imports will be cut to 30% from 145%
- China's levies on US imports will be cut to 10% from 125%
- *Joint Statement*: The US and China recognize the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship
- *Future Discussions*: Both countries will establish a mechanism to continue discussions on economic and trade relations, with working-level consultations on relevant issues
This development has had a positive impact on the markets:
- *European Stocks*: Major European stock indexes closed higher on Monday following the announcement
- *Oil Prices*: Oil prices rose about 4% after the US and China agreed to ease some tariff measures
- *Currency Markets*: The US dollar and Chinese yuan both recorded significant gains against the euro and Japanese yen, with the yuan also rising against the dollar
The agreement is seen as a major breakthrough, with both countries aiming to establish a more stable and beneficial trade relationship.