#TradeWarEases The US-China trade war has shown signs of easing after recent talks between the two countries. Here's what's happening:

Key Developments

- *Tariff Reduction*: The US will lower tariffs on Chinese goods from 145% to 30%, while China will reduce its retaliatory tariffs on US goods from 125% to 10%.

- *Temporary Relief*: Some levies have been suspended for 90 days, but may rise again if no further progress is made.

- *Exceptions*: The US is keeping a 20% tariff on Chinese goods to pressure Beijing to curb the illegal trade in fentanyl.¹ ²

Impact on Markets

- *Share Market Jump*: Share markets jumped after President Trump announced a "total reset" in trade terms between the US and China.

- *Global Economy*: The International Monetary Fund previously cut its growth forecast for the global economy due to uncertainty caused by tariffs.³ ⁴

Analysis

- *Significant De-escalation*: Economists view the agreement as a significant de-escalation of the trade war, which had almost precluded trade between the two largest economies.

- *Future Progress*: Further progress is expected in the coming months, with the potential for more tariff reductions.