US-China Trade Negotiations Ease Trade War

After a brief tug-of-war, representatives of the United States and China finally met behind closed doors for two days in Geneva, Switzerland to discuss the trade war. Finally, on May 12, 2025, each country agreed to announce the results of tariff negotiations that have been a scourge for the deteriorating global economy for the past two months. In a joint press conference, the US-China announced a consensus to reduce tariffs that were previously fussed over by both.

The US cut tariffs on imported Chinese goods to 30 percent from 145 percent previously. China also cut tariffs on US imported goods to 10 percent from 125 percent. This tariff reduction agreement is valid for the next 90 days. Furthermore, as a follow-up to the agreement, China then lifted the ban on China's national airline bringing in Boeing aircraft from the United States.

Source: apnews.com

In addition, the President of the United States also directly called Apple CEO Tim Cook for Apple regarding Apple's investment plans in the US. For information, so far Apple products such as iPhone, iPad McBook, are all produced in China. This happens because production costs in China are much more efficient but still produce high quality production goods.

The easing of trade tensions between the two world economic powers (US-China) also had a positive impact on the strengthening of global stocks in stock markets such as Wall Street, S&P500, Nasdaq which jumped up to 3.3 and 4.4 percent respectively. On the other hand, the world gold price declined to USD 3,234.8 per ounce from the previous period of USD 3,500 per ounce.