The United States and China have agreed to lower tariffs on each other’s products for the next 90 days. This step is seen as a big move to reduce tensions caused by their long-running trade war.
Starting May 14, the US will reduce tariffs on Chinese goods from 145% to 30%. In return, China will cut its tariffs on US products from 125% to 10%. However, the US has decided to keep the higher tariffs on fentanyl-related products, citing safety concerns.
As part of this agreement, both countries will also form a trade working group. This group will help maintain regular discussions, solve future issues, and make sure both sides stick to the deal.
The announcement brought positive news to the global economy. Stock markets in both the US and Asia saw big gains, showing investors’ relief and renewed confidence.
Experts believe that while the deal is temporary, it’s a hopeful sign that both sides are willing to talk and work things out. It may also help reduce pressure on businesses and consumers who have been dealing with higher costs due to the tariffs.
Many traders and economists are watching closely to see what happens after the 90-day period ends. For now, though, this agreement has brought a welcome break in the trade fight between the world’s two largest economies.
