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US and China Slash Tariffs, Enter 90-Day Truce

Beijing, China
May 13, 2025 0 Neutral General
US and China Slash Tariffs, Enter 90-Day Truce

In a surprise breakthrough, the US and China announced a significant tariff reduction over the weekend, lowering each side’s tariffs to 30% and 10% respectively—down from over 100% in many categories. The truce is set for 90 days as both countries continue negotiations. Markets responded positively, with global stock indexes seeing an immediate uptick. US officials see the move as a step toward normalizing trade after multiple rounds of tit-for-tat levies in recent years. China, for its part, opened more sectors to foreign investment, signaling a willingness to reach a long-term settlement. However, experts note that thorny issues, like intellectual property enforcement, remain unresolved.

What this means for you:
This tariff cut could lower prices on some consumer goods, from electronics to clothing, if supply chains adapt quickly.
If you invest in global markets, keep an eye on trade-exposed companies that could rebound if talks remain on track.
In the meantime, practice caution: 90 days is short, and any breakdown in talks might cause volatility again.

Key Entities

  • US Treasury Department: The main government body driving financial negotiations.
  • Chinese Ministry of Commerce: Oversees China’s trade policies and is a key player in bilateral talks.
  • Global Stock Markets: Reflect investor optimism or concerns about ongoing negotiations.

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