US China Trade Deal: China US Trade Deal has Changed a Lot | US China Tariffs

 China and America trend war has changed a lot

On May 12, 2025, the United States and China agreed to a significant de-escalation in their ongoing trade war by slashing tariffs and implementing a 90-day truce to facilitate further negotiations. 

Key Details of the Agreement

Tariff Reductions: The U.S. reduced its tariffs on Chinese goods from 145% to 30%, while China lowered its tariffs on U.S. goods from 125% to 10%  .

Suspension of Additional Tariffs: Both nations agreed to suspend 91% of existing tariffs and hold off on another 24% during the 90-day negotiation period  .

Negotiation Venue: The agreement was reached during face-to-face negotiations in Geneva, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng  .

Market Reactions

The announcement led to a surge in global financial markets: 

U.S. Markets: S&P 500 futures rose by 2.6%, and Dow Jones futures increased by 2%  .

Global Markets: European and Asian stock markets experienced significant gains, with notable increases in sectors like autos and mining  .

Commodities: Oil prices rallied, with U.S. benchmark crude rising to $62.68 per barrel and Brent crude to $65.55  .

Currency Markets: The U.S. dollar strengthened against major currencies, while gold prices declined due to improved trade sentiment  .

Implications and Outlook

While the agreement marks a positive step towards resolving trade tensions, experts caution that it is a temporary measure.  Underlying issues, such as intellectual property rights and technology transfers, remain unresolved.  Analysts emphasize the importance of continued dialogue to achieve a comprehensive and lasting trade agreement.

Both nations have expressed a commitment to balanced trade and global economic stability.  The 90-day truce provides an opportunity for further negotiations aimed at addressing deeper structural issues in the bilateral trade relationship