#TradeWarEases TradeWarEases Summary of #TradeWarEases (May 2025)
The United States and China have reached a major agreement to de-escalate their trade war. Both countries have agreed to significantly reduce their tariffs over a period of 90 days:
United States: reduction of tariffs from 145% to 30%
China: reduction from 125% to 10%
Immediate effects:
Financial markets reacted strongly upward (3.5% increase in S&P 500 and Nasdaq futures)
The dollar strengthened, and U.S. bond yields rose
Crude oil prices surged (WTI at $62.68, Brent at $65.55)
Reactions:
Analysts welcome a truce better than expected
Others remain cautious, highlighting the temporary nature of the agreement and ongoing uncertainties
Next steps:
The truce opens a window for negotiating a more comprehensive agreement
Other sensitive issues (such as fentanyl or certain key sectors) remain unresolved
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