Trump's Trade Breakthrough: US and China Slash Tariffs in Major Deal

BREAKING: US and China Reach Massive Tariff Deal, Boosting Global Markets The United States and China have reached a significant trade agreement, slashing tariffs on billions of dollars worth of goods. The deal, announced on May 12, 2025, involves reciprocal tariff cuts, with both countries lowering tariffs by a substantial 115%. This agreement follows months of tense negotiations and has been hailed as a breakthrough in trade relations between the two economic superpowers. Specifically, China will reduce tariffs on US goods from 125% to 10%, while the US will temporarily lower tariffs on Chinese goods from 145% to 30%. These measures will remain in place for 90 days, beginning Wednesday. The impact on global markets has been immediate and dramatic, with stocks surging following the announcement. Treasury Secretary Scott Bessent stated, "This breakthrough was possible under President Trump because China chose to cooperate with him instead of President Biden." The deal is expected to have a significant positive impact on global trade and economic growth. The 90-day timeframe suggests this is an interim agreement, leaving the door open for further negotiations and potential long-term agreements. However, for now, the deal represents a significant step towards easing trade tensions and fostering economic cooperation between the US and China.