#TradeWarEases

The US-China trade war has seen a significant development with both countries agreeing to temporarily reduce tariffs for 90 days. This pause in the trade tensions has led to a surge in global stock markets, with the S&P 500 reaching its highest level since March 3. Here's what's happening ¹:

- *Tariff Reductions*: The US will cut extra tariffs on Chinese imports from 145% to 30% for the next three months, while Chinese duties on US imports will fall to 10% from 125%.

- *Export Restrictions*: China has agreed to lift export countermeasures issued after April 2, including restrictions on rare earth minerals and magnets used in high-tech manufacturing.

- *Market Reaction*: Financial markets have welcomed the reprieve, with Wall Street stocks closing sharply higher and the US dollar rising. Safe-haven gold prices have fallen as concerns about the trade war's impact on the global economy ease.

*Expert Insights:*

- *Scott Bessent, US Treasury Secretary*: Believes neither side wants a full economic decoupling and both are committed to achieving more balanced trade.

- *Scott Kennedy, China Business and Economics Expert*: Sees the agreement as a retreat by the US, stating that the Chinese have only withdrawn their retaliatory measures.

- *Kelly Ann Shaw, Former Trade Adviser*: Thinks the president is delivering on his campaign pledges, but acknowledges that 90 days is not enough time to address major US concerns ¹.