US-China Trade Deal Averts Global Recession Scare

US and China Reach Tariff Deal, Avert Global Recession Fears The United States and China have reached an agreement to significantly lower tariffs, easing concerns about a potential global recession. The deal, reached after face-to-face meetings between senior economic officials, marks a significant thaw in trade relations between the two superpowers. Treasury Secretary Scott Bessent announced the agreement, stating, "Tariffs will come down by over 100 percentage points to 10%. Neither side wants a decoupling. We do want trade, we want more balanced trade, and I think that both sides are committed to achieving that." This is a significant development, given the strained trade relationship between the two countries. These talks were the first face-to-face meetings of their kind since the second term of President Donald Trump. During that time, President Trump significantly increased tariffs on Chinese goods, leading to retaliatory measures from China, including export curbs on some rare earth elements and a 125% tariff increase on US goods. The resulting trade war brought nearly $600 billion in trade to a standstill. This new agreement signals a potential end to that conflict and a move towards more balanced trade relations. The positive impact of this agreement is already being felt. Wall Street stock futures climbed immediately following the announcement, reflecting optimism about the global economic outlook. The agreement offers a glimmer of hope that the worst of the global economic uncertainty may be behind us.