#TradeWarEases

The US-China trade war has eased with a landmark trade deal announced on May 12, 2025. The agreement includes significant tariff cuts on each other's goods for 90 days. Here's what's changing ¹:

- *US Tariffs on Chinese Imports*: Cut to 30% from 145%

- *Chinese Levies on US Imports*: Cut to 10% from 125%

This development comes after constructive talks between US and Chinese officials in Geneva, Switzerland. The two countries aim to establish a mechanism for continued discussions on economic and trade relations, potentially leading to a more sustainable and mutually beneficial partnership.

*Impact on Markets:*

- *Currency Fluctuations*: The US dollar and Chinese yuan have risen against the euro and Japanese yen following the trade deal announcement.

- *Stock Market Response*: Chip stocks and US tech giants like Apple, Nvidia, Amazon, and Microsoft have surged, reflecting investor optimism about the reduced trade tensions ¹ ².

*Future Outlook:*

The agreement marks a positive step towards easing trade war fears, but details on long-term implications and potential further tariff adjustments remain to be seen. The US and China will continue discussions to solidify their economic and trade relationship ¹ ³.