By iNewsAfrica Business Desk | May 12, 2025
In a major breakthrough that could ease months of economic uncertainty, the United States and China have reached a temporary agreement to reduce tariffs on each other’s goods, providing much-needed relief to businesses and investors worldwide.
The deal, announced today, rolls back some of the steep tariffs that fueled one of the most intense trade standoffs between the world’s two largest economies. Under the agreement, the United States will cut tariffs on Chinese imports from 145% to 30%, while China will slash its tariffs on American goods from 125% to 10%. The tariff reductions are scheduled to last for 90 days, offering both sides breathing room to pursue broader negotiations.
Global financial markets reacted positively, with stock indexes in Asia, Europe, and the United States surging on the news. Commodity prices, particularly oil, also saw gains as traders bet on improved economic stability.
“This is a step toward restoring balance in the global economy,” a senior US trade official said. “But this is just the beginning. More difficult talks lie ahead.”
While both governments hailed the move as progress, analysts warn that the core issues behind the US-China rivalry—including disputes over technology, intellectual property, and industrial subsidies—remain unresolved.
The temporary truce builds on earlier efforts dating back to the 2020 “Phase One” deal, which saw China fall short of its promised purchase targets. With today’s announcement, both countries appear ready to reopen strategic dialogues on critical industries such as semiconductors, steel, and pharmaceuticals.
Observers say this could mark a turning point or yet another pause in a prolonged economic battle that has shaped global trade for years.
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As the US and China recalibrate their economic relations, Africa’s role as a rising trade partner is more critical than ever. Could this deal open new opportunities for African exports, manufacturing, and innovation? Or will the continent once again bear the ripple effects of superpower competition?
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