U.S.-China 90-Day Trade Agreement — Tariff Cuts Announced Amid Rising Tensions (12 May 2025)

By International Desk | http://www.newsnationonline.com | Date: 12 May 2025

The United States and China have reached a critical 90-day trade agreement aimed at reducing economic tension by slashing tariffs from both ends. The agreement, effective from May 14, 2025, was finalized in Geneva after prolonged discussions between trade representatives of both global powers.

Key Highlights of the U.S.-China Trade Agreement

Tariff Reductions: U.S. to cut tariffs on Chinese goods from 145% to 30%. China will reduce tariffs on American products from 125% to 10%.
Effective Date: Changes come into force starting May 14, 2025.
Duration: Temporary agreement valid for 90 days, allowing room for further structural negotiations.
Exemptions: Key items like automobiles, aluminum, steel, and certain pharmaceuticals remain outside the tariff cut.

Impact on Global Economy and Markets

The stock markets responded positively, with the Dow Jones surging over 1000 points. Retail, tech, and manufacturing sectors saw sharp gains. Analysts view this move as a much-needed pause that could prevent a full-scale trade war between the two economic giants.

Sectoral Reactions:

Retail: Stocks of Nike, Amazon, and Under Armour rose by up to 11%.
Travel & Airlines: Delta and Carnival Cruises gained over 8% on investor optimism.

Statements from U.S. and Chinese Leadership

President Donald Trump hailed the agreement as a “total reset” in trade relations, promising greater market access for American firms.

Meanwhile, Chinese state media acknowledged the deal but emphasized caution, reflecting uncertainty about long-term American commitment.

What’s Next?

While this 90-day reprieve is welcome, the larger issues such as intellectual property rights, data security, and technology transfers remain unsolved. The next round of talks is scheduled for July 2025.

Conclusion

This agreement signals a momentary thaw in the U.S.-China economic standoff. For businesses and investors worldwide, it is a brief window of relief. However, the world will closely watch if this leads to a sustainable trade framework between Washington and Beijing.

Tags: #USChinaTradeDeal #TariffReduction #GlobalMarkets #DonaldTrump #ChinaUSAgreement #WorldEconomy #TradeWarPause #GenevaTalks #NewsNationOnline