The trade war between China and the United States has temporarily ceased! Tariffs have been significantly reduced to 10%, and the market is fully recovering.

The two major economies in the world can finally breathe a sigh of relief! The United States and China reached a significant trade agreement on Monday, announcing a "temporary halt" on most tariffs on each other's goods, symbolizing a clear easing of the tense trade relations between both sides in recent years. This move immediately injected a boost into global markets, with U.S. stock futures rising across the board, and the U.S. dollar index strengthening in sync with European stock markets.

Tariff "Big Chill": Bilateral tax rate plummets from 125% to 10%

According to the protocol content, both the U.S. and China agree to significantly reduce the "reciprocal" punitive tariffs from the original high of 125% down to only 10%. However, the U.S. will maintain an additional 20% tariff on Chinese imports related to fentanyl, meaning that the overall tariff level on Chinese goods is approximately 30%.

U.S. Treasury Secretary Scott Bessent stated at a press conference: "We have reached a 90-day suspension protocol and significantly reduced tariffs. Both parties will simultaneously lower the equivalent tariffs by 115%."

Key negotiation venue: Geneva, Switzerland adds a "peaceful atmosphere" to the discussions.

This groundbreaking protocol was finalized during high-level negotiations held by Lake Geneva in Switzerland. Bessent noted that the choice of location contributed to a positive and balanced dialogue outcome, "I believe that choosing Geneva as the location brought great calm and balance to this highly constructive process."

Both sides also expressed that they will continue to engage in dialogue on economic and trade policies in the future, indicating that bilateral relations are expected to gradually warm up.

Stocks and currencies rise together: the market quickly reacts positively.

Investors reacted enthusiastically to this "tariff truce," with U.S. stock futures rising across the board:

Nasdaq futures surged 3.6%

S&P 500 futures rose 2.8%

Dow Jones Industrial Average futures surged nearly 1,000 points, with a gain of 2.3%.

In addition, the ICE Dollar Index, which measures the performance of the dollar against a basket of global currencies, surged 1.3% to 101.63, indicating a recovery in investor confidence.

In Europe, the pan-European Stoxx 600 index rose 0.7% in early trading, reflecting a positive response from the global capital markets to the easing of the China-U.S. trade situation.

A brief ceasefire or the starting point of a long-term easing?

Although this protocol is only a 90-day "temporary ceasefire," it is enough to bring hope to the long-standing tensions in the China-U.S. trade war. Investors and the business community will continue to pay attention to whether both sides can reach a more long-term, structural new trade agreement within the next three months. Against the backdrop of global geopolitical dynamics and supply chain restructuring, the direction of China-U.S. trade dialogue will inevitably influence market trends and corporate decision-making.

This article reports that the China-US trade war has temporarily ceased! Tariffs have been significantly reduced to 10%, and the market is fully recovering. It first appeared on Chain News ABMedia.