A temporary truce in the US-China trade war has brought a momentary sigh of relief, with both nations agreeing to significantly reduce tariffs for 90 days. The US cut tariffs on Chinese goods from 145% to 30%, while China lowered its retaliatory tariffs from 125% to 10%. This move has sparked optimism in global markets, with notable surges in US stock indices such as the S&P 500 and Nasdaq. However, the pause is seen as a brief respite rather than a long-term solution, with skepticism about the potential for a lasting agreement.
Despite the apparent progress, underlying tensions remain. President Xi Jinping has criticized the US for its aggressive trade stance, while President Trump has emphasized the temporary nature of the truce. The agreement has led to a flurry of activity, especially among Chinese factories rushing to fulfill US orders. Analysts warn that the root causes of the trade conflict still loom large, and businesses and investors remain cautious. As negotiations continue, the future of US-China trade relations hangs in the balance, with both sides seeking to navigate a complex and uncertain landscape.
