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US-China Announce Major Trade Agreement Reset

Solomon M. by Solomon M.
May 12, 2025
in Latest News
us china trade agreement painting
Key Takeaways:
  • The deal includes reciprocal tariff reductions.
  • Tariffs lowered by 115% for 90 days.
  • Partial resolution of ongoing trade tensions.
us-china-announce-major-trade-agreement-reset
US-China Announce Major Trade Agreement Reset

In an announcement from the White House, a new trade agreement between the U.S. and China was revealed, signaling a shift in their economic relations after discussions in Geneva, Switzerland.

Both countries’ decision to reduce tariffs marks a significant diplomatic progression, reflecting a mutual interest in improving trade relations and addressing longstanding concerns. The immediate market reactions are yet to unfold.

President Donald Trump has reportedly secured this agreement, termed as a “historic trade win” by the White House.

“This historic trade win represents a significant shift in our trade relationship with China, marking the first joint statement on trade in many years.” — Donald Trump, President of the United States

The agreement was reached after intensive negotiations, emphasizing a temporary 90-day suspension of most tariffs imposed since early April 2025.

Treasury Secretary Scott Bessent played a pivotal role, leading efforts in Geneva. The agreement requires both the United States and China to reduce their tariffs by 115%, while still maintaining a 10% tariff. Scott Bessent explained, “Washington and Beijing will reduce their reciprocal tariffs by 115% for three months to provide room for negotiations to progress.”

The agreement’s impact could extend to various economic sectors, influencing both countries’ markets and industries. Financial markets might react favorably, viewing the act as a de-escalation of trade conflicts.

The financial implications include potential shifts in trade volumes and economic forecasts. Politically, it may ease tensions between the two nations, although some tariffs and measures will persist.

An examination of historical trends shows that past trade agreements can lead to increased market confidence. This deal may lay the foundation for future negotiations, opening opportunities for further economic collaborations.

Disclaimer:

The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.

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