[US - China Reach Tax Agreement, Global Markets Brighten]
On May 12, 2025, after negotiations in Geneva, the US and China reached a temporary agreement to reduce reciprocal tariffs for 90 days.
The US reduced import tariffs from China from 145% to 30%
China reduced tariffs on US goods from 125% to 10%
The de minimis tax for low-value packages from China to the US decreased to 54% starting May 14, 2025
President Trump called this “a new beginning”, while President Xi Jinping emphasized that “no one wins in a trade war”.
The market reacted positively: S&P 500, Dow Jones, oil prices, and USD all increased.
However, this is just a temporary agreement - investors should be cautious in light of subsequent developments.