May 13, 2025 | Washington D.C. — In a move that sent shockwaves through financial markets and international political circles, former U.S. President Donald Trump announced today a temporary 90-day pause in the long-standing trade war between the United States and China. The agreement, which was confirmed by both governments early Tuesday morning, temporarily rolls back tariffs on billions of dollars’ worth of imported goods.
Under the terms of the deal, the United States will reduce its tariffs on Chinese imports from 40% to 30%, while China will lower its tariffs on American products to 10%. The move comes amid escalating economic tensions and follows months of public sparring over trade deficits, technology access, and market control.
In a statement from his campaign office in Palm Beach, Trump hailed the agreement as “a tremendous win for American businesses and workers,” while suggesting it marks the beginning of a broader renegotiation of trade relations with Beijing.
“This is a smart, tough deal. We’re bringing billions back home and making sure China plays fair. America First is alive and well,” Trump said.
Chinese officials, in a separate statement, characterized the agreement as a “constructive step toward stabilizing economic relations,” and signaled openness to further talks during the 90-day reprieve.
Markets React Positively
News of the tariff freeze sparked an immediate rally on Wall Street. The Dow Jones Industrial Average surged over 600 points in early trading, while the S&P 500 and Nasdaq also posted significant gains. Analysts attributed the market optimism to renewed hopes of de-escalating trade hostilities, which had previously threatened global supply chains and contributed to inflationary pressures in both countries.
“This is the first major thaw in U.S.-China relations we’ve seen in years,” said economic strategist Rachel Kim of Apex Financial Group. “Investors are responding positively to any sign of predictability in what’s been a volatile geopolitical environment.”
Mixed Reactions From Economists
While the agreement has eased market anxieties, some economists warn that the pause may be a temporary fix for deeper structural issues in the U.S.-China economic relationship.
“The tariff reductions are welcome news, but a 90-day ceasefire doesn’t resolve fundamental disputes over technology, intellectual property, and market access,” said Dr. Leonard Wu, a senior fellow at the Center for Global Economics. “It remains to be seen whether meaningful progress will be made during this window.”
Looking Ahead
Both governments are expected to convene high-level trade negotiations within the next month to address lingering issues, including restrictions on technology exports, agricultural imports, and digital commerce regulations.
In the meantime, business leaders and global markets will be watching closely to see if this temporary pause leads to lasting peace in one of the 21st century’s most consequential economic battles.