Temporary Agreement Between Powers Reduces Tariffs and Signals Relief for the Global Economy, but Uncertainties Remain
The US and China have reached a 90-day trade truce agreement, which includes mutual tariff reductions starting on May 14. The measure generated positive reactions in the financial market, but experts emphasize that the relief is temporary in light of the structural challenges of the economic conflict between the two largest economies in the world.
US-China Agreement Suspends Tariffs for 90 Days
According to the portal Xataka, the US will reduce its tariffs on Chinese products from 145% to 30%, while China will lower tariffs on US goods from 125% to 10%. The announcement was made following a series of diplomatic meetings and represents a strategic pause in the trade war that has intensified in recent years. The measure will take effect on May 14, 2025, and although it does not end the dispute, it is seen as a step forward in dialogue between the countries.
Market Reacts Optimistically to US-China Truce
According to an analysis published by InfoMoney, the impact of the announcement was immediate in global markets. US stock exchanges, such as the S&P 500 and Nasdaq, recorded gains exceeding 3% shortly after the news. Investors saw the agreement as an opportunity to restore economic confidence, both in the United States and China, especially regarding the performance of China’s GDP in the second quarter. Growth may be driven by increased exports and improved trade relations.
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Permanent Dialogue Integrates Plan Between US-China
Another central point of the pact, according to Xataka, is the establishment of a fixed economic dialogue mechanism . Periodic meetings between high-ranking officials from both countries are planned, alternating locations between the nations or in neutral spaces. This structure aims to mitigate future tensions and seek quicker solutions to trade disputes, signaling a more mature attempt to conduct the relationship between the US and China.
Experts See Truce as Temporary Relief
Despite the positive reception, analysts consulted by InfoMoney point out that the truce does not resolve the underlying issues between the US and China. Issues such as intellectual property, state subsidies, and technological dominance remain on the agenda and are likely to generate conflicts in the coming months. The truce is, therefore, a strategic breath, important, but far from definitive.
