#TradeWarEases On May 12, 2025, the United States and China agreed to a 90-day reduction in tariffs, marking a significant de-escalation in their ongoing trade war. The U.S. reduced tariffs on Chinese imports from 145% to 30%, while China lowered its tariffs on U.S. goods from 125% to 10%.

This temporary truce, effective until August 10, has led to a surge in global markets. The Dow Jones Industrial Average jumped nearly 1,000 points, the S&P 500 rose by 2.6%, and the Nasdaq experienced significant gains. Investors are optimistic about the potential for a more comprehensive trade agreement in the near future.

While the tariff reductions provide short-term relief for businesses and consumers, challenges remain. The remaining tariffs still impose costs, and companies continue to face uncertainties in supply chain planning.