Insight

U.S. Concedes Trade Deal, A Win for China

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Algo Research Team

Economics | May 13, 2025 | Views: 311

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Key Summary:

  • China and U.S. agree on trade deals to reduce tariffs for 90 days
  • China still imposes 10% tariff, while U.S. tariff is higher at 30%
  • Further deals could be secured, especially regarding fentanyl flows

Less than six weeks after United States initiated the “Liberation Day” tariff war against the world, it has finally caved in to secure a trade deal with China to prevent further damage to its economy.


Context: The two largest economies in the world agreed to reduce tariffs by 115bps on each other’s products for 90 days, in a move to de-escalate the impacts of the tariff war.

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