#TradeWarEases

The US-China trade war has seen some easing, with both countries agreeing to slash tariffs on each other's goods for 90 days. Here's a breakdown of the recent developments ¹:

- *Tariff Reductions*: The US will cut tariffs on Chinese imports to 30% from 145%, while China's levies on US imports will be reduced to 10% from 125%.

- *Joint Statement*: Both countries recognize the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship. They've agreed to establish a mechanism to continue discussions on economic and trade relations.

- *Currency Impact*: The US dollar and Chinese yuan have risen after the trade deal, with both currencies valuing up against the euro and Japanese yen. The Chinese yuan also rose against the dollar.

- *Future Discussions*: The two sides will continue discussions on economic and trade relations, potentially conducting working-level consultations on relevant issues.

*Key Benefits:*

- *Eased Trade Tensions*: The reduction of tariffs and agreement on continued discussions may help ease trade tensions between the two nations.

- *Economic Relief*: The tariff exemptions and reductions could provide relief to firms and industries affected by the trade war.

- *Market Stability*: The agreement has contributed to market stability, with stocks and currencies responding positively.

Keep in mind that the trade deal's long-term impact and potential future developments remain to be seen.