{"id":114426,"date":"2025-05-12T13:10:58","date_gmt":"2025-05-12T09:10:58","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=114426"},"modified":"2025-05-12T13:11:03","modified_gmt":"2025-05-12T09:11:03","slug":"u-s-and-china-agree-to-90-day-tariff-truce-markets-rally-on-de-escalation-hopes","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/u-s-and-china-agree-to-90-day-tariff-truce-markets-rally-on-de-escalation-hopes\/05\/12\/market-updates\/","title":{"rendered":"U.S. and China Agree to 90-Day Tariff Truce, Markets Rally on De-escalation Hopes"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>In a significant step toward easing trade tensions, the United States and China announced on Monday a <strong>90-day pause on escalating tariffs<\/strong>, marking a rare moment of collaboration between the world\u2019s two largest economies. The agreement includes <strong>mutual reductions in import duties<\/strong>, providing a temporary reprieve from a standoff that has rattled markets and threatened global growth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Key Points of the Agreement<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>U.S. tariffs on Chinese goods<\/strong> will be <strong>reduced to 10%<\/strong>, down from a peak of 145% imposed earlier this year.<\/li>\n\n\n\n<li>A <strong>20% tariff targeting China\u2019s alleged role in the fentanyl trade<\/strong> will remain in place.<\/li>\n\n\n\n<li><strong>China will lower its retaliatory tariffs<\/strong> on U.S. goods to 10%, from 125% previously.<\/li>\n\n\n\n<li>Both nations issued a <strong>joint statement<\/strong>, signaling further <strong>working-level consultations and negotiations<\/strong> in the weeks ahead.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market Reaction<\/h3>\n\n\n\n<p>The announcement triggered a <strong>broad rally in global financial markets<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>U.S. stock futures surged<\/strong>, building on weekend momentum as investors priced in optimism for a more stable trade environment.<\/li>\n\n\n\n<li>The <strong>U.S. dollar strengthened<\/strong> against major currencies, while China\u2019s <strong>yuan appreciated<\/strong>, reflecting renewed confidence in the trade outlook.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Lingering Concerns<\/h3>\n\n\n\n<p>Despite the temporary easing, analysts noted that the current <strong>tariff levels remain significantly elevated<\/strong> compared to the start of President Donald Trump\u2019s second term. Tariffs on <strong>steel, aluminum, and automobiles<\/strong> remain in place, along with a <strong>universal 10% baseline duty<\/strong> on most imports.<\/p>\n\n\n\n<p>Treasury Secretary <strong>Scott Bessent<\/strong> previously warned that the earlier tariff structure was tantamount to a <strong>\u201ctrade embargo,\u201d<\/strong> and while the latest move represents progress, markets remain wary of a full resolution.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Looking Ahead<\/h3>\n\n\n\n<p>The 90-day window now opens the door to <strong>potential breakthroughs or setbacks<\/strong>, depending on how subsequent negotiations unfold. With both economies facing internal economic pressures, the truce is seen as a pragmatic step toward avoiding further damage\u2014but a <strong>comprehensive deal still appears distant<\/strong>.<\/p>\n\n\n\n<p>Investors will be closely watching upcoming bilateral discussions, any updates to tariff schedules, and broader global economic indicators to assess whether this ceasefire leads to lasting trade normalization.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a significant step toward easing trade tensions, the United States and China announced on Monday a 90-day pause on escalating tariffs, marking a rare moment of collaboration between the world\u2019s two largest economies. The agreement includes mutual reductions in import duties, providing a temporary reprieve from a standoff that has rattled markets and threatened &hellip;<\/p>\n","protected":false},"author":9,"featured_media":32831,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[6832,7302,6897,10433],"class_list":["post-114426","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","tag-china","tag-trade-war","tag-trump","tag-us-debt"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=114426"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114426\/revisions"}],"predecessor-version":[{"id":114427,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114426\/revisions\/114427"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/32831"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=114426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=114426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=114426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}