Trade Truce Shakes Markets: U.S. and China Agree on 90-Day Tariff Reduction
The U.S. and China have agreed to reduce tariffs for 90 days, pausing a long-running trade dispute. The move sparked global stock market gains but left unresolved deeper issues like the U.S. trade deficit and fentanyl crisis. Businesses call for clarity, while consumer concerns continue.
In a significant development, global stock markets surged as the United States and China reached an agreement to reduce tariffs on each other's products for the next 90 days. This move temporarily calms fears of an escalating trade war that had threatened to plunge the world into recession.
Investors were buoyed by the agreement; however, concerns linger about the deeper trade imbalances that initially sparked the dispute. Businesses have cautiously welcomed the move, seeking clearer guidelines before making substantial changes. U.S. Treasury Secretary Scott Bessent acknowledged the complexity of normalizing trade relations with China, which may take years.
Despite this temporary respite, tensions remain as the agreement didn't lift all tariffs or address critical issues, such as the fentanyl crisis attributed to China. As the world watches for further negotiations, markets remain hopeful yet wary of potential economic disruptions.
(With inputs from agencies.)
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