🌍 90 Days, 5 Numbers: Inside the U.S.–China Tariff Break

🌐 A Pause in the Trade War

On Monday, global stock markets soared after a surprising announcement: the United States and China agreed to pause their tariff war for 90 days. This deal between the two largest economies in the world brought much-needed relief to businesses and investors who have been on edge for months.

While the agreement marks a break in rising tensions, it doesn’t fully solve the deeper problems that caused the trade dispute in the first place—such as the U.S. trade deficit with China and disagreements over drug enforcement and manufacturing support.

📉 Massive Tariff Cuts: By the Numbers

Here’s what changed:

• U.S. tariffs on Chinese goods dropped from 145% to 30%.

• China’s tariffs on American goods were slashed from 125% to 10%.

These cuts apply for the next 90 days while both countries continue talks. That’s a big change in a short amount of time—and it’s part of why markets reacted so strongly.

🧲 More Than Just Tariffs

As part of the deal, China also agreed to roll back restrictions it had placed after April 2. These included export controls on rare earth minerals and magnets, which are critical for electronics, clean energy tech, and even military equipment.

U.S. Trade Representative Jamieson Greer said these changes would help restart global supply chains that had been frozen, putting pressure on companies and workers alike.

📈 Market Reactions Around the World

Investors cheered the deal.

• The S&P 500 hit its highest close since March 3.

• The Nasdaq Composite rose to its best level since February.

• The U.S. dollar gained strength, while gold prices fell as fears of a global slowdown eased.

Even though the long-term future of the trade relationship is still uncertain, the news was enough to trigger a rally across financial markets.

🏛️ What Comes Next?

Leaders from both countries framed the deal as a victory. President Trump called it a step toward peace and promised more cooperation to come. Meanwhile, China’s state media said the agreement shows their strong negotiating stance is working.

Still, many experts say 90 days isn’t enough to fix deep trade issues. Some businesses are being cautious, not sure if this truce will last. U.S. Treasury Secretary Scott Bessent, who helped craft the deal, admitted that it could take years to truly rebuild trade ties.

For now, both countries are planning more meetings in the coming weeks. Whether this 90-day pause leads to long-term change—or just more uncertainty—remains to be seen.

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