#TradeWarEases

The trade talks between the U.S. and China in Geneva achieved "substantial progress", establishing a mechanism for economic and trade consultation. Global markets reacted positively, with increases in U.S., European, and Asian stock exchanges, but volatility persists due to the temporary 90-day tariff truce (U.S. reduces tariffs to 30%, China to 10%) and the lack of a binding agreement. Sectors such as technology and agriculture will benefit, although macroeconomic risks remain. Trade policies could be reconfigured with more dialogue, but U.S. protectionism and China's strategic priorities limit deep advances. The joint statement on May 12 will detail tariff reductions, the consultation mechanism, and the suspension of non-tariff measures, but will avoid technological topics. The agreement is a fragile "tactical ceasefire", with risks of escalation if future negotiations fail.