On May 12, 2025, the United States and China reached a pivotal agreement to reduce tariffs for a 90-day period, marking a significant de-escalation in the ongoing trade tensions between the two economic powerhouses.
Key Details of the Agreement
- Tariff Reductions: The U.S. agreed to lower tariffs on Chinese imports from 145% to 30%, while China reduced its tariffs on U.S. goods from 125% to 10%. Wikipédia+2Investor’s Business Daily+2Wikipédia+2
- Duration: The reduced tariff rates will be in effect for 90 days, providing a window for further negotiations.Wikipédia+3Wikipédia+3Wikipédia+3
- Market Impact: Following the announcement, global stock markets experienced a significant rally. The Dow Jones Industrial Average rose by 1,160 points (2.8%), the S&P 500 gained 3.3%, and the Nasdaq Composite increased by 4.4%. Investor’s Business Daily
Economic Implications
This temporary easing of trade restrictions is expected to alleviate some pressure on industries affected by the tariffs, particularly in technology and agriculture. However, economists caution that the agreement is a short-term solution and emphasize the need for a comprehensive trade deal to address underlying issues. Business Insider
Next Steps
Both nations have expressed a commitment to continue negotiations during this 90-day period to work towards a more permanent resolution. Observers will be watching closely to see if this temporary truce can lead to a lasting agreement that stabilizes trade relations and promotes global economic growth.Wikipédia+2Business Insider+2The Guardian+2
For more detailed information, you can refer to the original CNN article: Trump says China agrees to fully open country’s markets to US businesses.
