US and China Strike 90-Day Trade Deal: Tariffs Slash, Recession Fears Ease

US and China Reach Surprise Trade Deal, Slashing Tariffs The United States and China have reached a 90-day agreement to significantly reduce tariffs on reciprocal goods. This unexpected breakthrough follows weeks of tense trade talks. The deal cuts tariffs from a staggering 125% to a more manageable 10% on a wide range of products traded between the two economic giants. However, the US is maintaining a 20% tariff on Chinese fentanyl imports. "This is a significant step towards de-escalation," says an unnamed source familiar with the negotiations, adding that the deal "provides a much-needed reprieve for global markets." The temporary nature of the deal, however, leaves room for uncertainty. Further negotiations are expected to determine a longer-term trade agreement. The impact on consumer prices in the US remains to be seen, but experts predict a positive, albeit modest, effect on inflation. The agreement also comes at a time when the US is facing a decline in GDP and concerns about a possible recession. The temporary reduction in tariffs could help to mitigate these risks in the short term. The 90-day period provides a window of opportunity for both nations to work towards a more comprehensive and sustainable trade relationship. The success of this interim agreement could set the stage for future collaborations and contribute to a more stable global economy.