Tag: economic diplomacy

On May 13, 2025, China's Ministry of Finance announced a significant policy shift: China's 90-Day Tariff Reduction on U.S. goods to 10%, effective from May 14. This move marks a notable de-escalation in the ongoing trade tensions between the world's two largest economies. The decision follows a series of reciprocal tariff increases that had escalated to unprecedented levels, with U.S. tariffs on Chinese goods reaching 145% and Chinese tariffs on U.S. goods peaking at 125% .

U.S.-China Tariff Reduction: On May 12, 2025, the United States and China announced a significant, albeit temporary, reduction in tariffs, marking a notable de-escalation in their ongoing trade conflict. The agreement entails the U.S. lowering tariffs on Chinese goods from 145% to 30%, while China reduces its tariffs on U.S. goods from 125% to 10%, effective for a 90-day period starting May 14, 2025 . This development follows a series of tit-for-tat tariff increases that have strained bilateral relations and disrupted global supply chains.

Introduction In May 2025, the U.S. and China announced a tentative agreement aimed at de-escalating the ongoing trade war, which has seen both nations impose...

U.S.-China Trade Talks: On May 9, 2025, global oil markets experienced a modest uptick, with Brent crude rising to $63.07 per barrel and U.S. West Texas Intermediate reaching $60.12 per barrel. This increase follows a 3% surge the previous day, primarily attributed to easing trade tensions between the United States and China, the world's two largest oil consumers. The anticipation of high-level trade discussions scheduled for May 10 in Switzerland between U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng has injected cautious optimism into the markets.

On May 7, 2025, global financial markets experienced a notable uptick following announcements of impending high-level trade discussions between the United States and China Trade, coupled with China's decision to implement monetary easing measures. These developments have rekindled investor optimism, suggesting potential de-escalation in trade tensions and a commitment to economic stabilization by the world's two largest economies.

The intricate tapestry of U.S.-China Trade relations has been marked by a series of economic engagements, strategic partnerships, and, more recently, escalating tensions. The recent announcement of high-level trade talks between U.S. Treasury Secretary Scott Bessent, chief trade negotiator Jamieson Greer, and China's economic chief He Lifeng in Geneva signifies a potential thaw in the frosty relations that have characterized the two nations' interactions in recent years. This meeting aims to address the extensive tariffs that have disrupted global markets and supply chains, with the U.S. imposing up to 145% tariffs on Chinese imports and China retaliating with 125% tariffs on U.S. goods.