US and China: A Look at Tariff Cuts and Growing Influence

In early May 2025, the United States and China reached an agreement on temporary reduction of mutual tariffs for a period of 90 days, which marked the first significant step toward de-escalating the protracted trade war between the world's two largest economies.

Under the agreement, the United States will reduce tariffs on Chinese imports from 145% to 30%, and China will in turn reduce tariffs on American goods from 125% to 10%. Although the agreement is temporary, it has already had a positive impact on the global economy.

Following the announcement of the agreement, global stock markets showed confident growth. The Dow Jones, Nasdaq and S&P 500 indices closed in positive territory, and growth was also recorded on European and Asian exchanges. At the same time, the dollar's position on currency markets strengthened, which analysts attribute to the restoration of investor confidence and the easing of fears of a recession.

Both sides stress that the 90-day period will be used for further negotiations on a possible complete revision of tariff policy and the settlement of other aspects of trade relations, including the protection of intellectual property, high-tech exports and financial regulation.

Observers see the agreement as critical not only for the U.S. and China, but also for global supply chains, inflation expectations, and currency market dynamics. But many experts are urging cautious optimism, pointing to the fragility of the deal and potential political obstacles to a long-term solution.