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On May 12, 2025, the United States and China agreed to a 90-day reduction in tariffs to ease trade tensions. The U.S. lowered tariffs on Chinese goods from 145% to 30%, while China reduced tariffs on U.S. imports from 125% to 10%. This agreement, reached during talks in Geneva, aims to stabilize global markets and prevent further economic strain. The announcement led to significant gains in global stock markets, with the Dow Jones Industrial Average rising by over 1,100 points. While the deal offers temporary relief, both nations acknowledge that further negotiations are necessary to resolve ongoing trade issues.
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