#TradeWarEases

The trade war between the US and China has shown signs of easing with a landmark trade deal announced on May 12, 2025. Here's what's happening ¹:

- *Tariff Reduction*: The US and China agreed to slash tariffs on each other's goods for 90 days.

- *Economic Impact*: This move aims to mitigate economic strain caused by the prolonged trade conflict and alleviate domestic stability concerns in China.

- *Shift in Trade Policy*: The US has temporarily lifted tariffs on most nations for 90 days while increasing tariffs on Chinese imports to 125%, focusing the tariff battle primarily between the US and China.

*Previous Developments:*

- China had previously eased tariffs on selected US goods to reduce economic strain.

- Emerging market growth was impacted by the trade war, but a weaker dollar eased some risks ² ³.

*What's Next:*

The 90-day tariff reduction is expected to provide temporary relief to businesses and economies affected by the trade war. However, the long-term impact will depend on further negotiations and agreements between the US and China.