US and China Call a Temporary Truce in Trade War

US and China Reach Temporary Tariff Truce Amidst Economic Uncertainty The United States and China have agreed to a 90-day truce in their trade war, temporarily lowering tariffs on each other's goods. The move, announced earlier this week, will see the US reduce tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on US goods to 10%. The decision comes as both countries face economic headwinds, and follows months of escalating tensions. The stock market initially celebrated the news, with indices rising sharply on the day of the announcement. However, economists remain divided on the long-term consequences. Some analysts express concerns about the potential impact on small businesses, many of whom have struggled under the weight of higher tariffs. The Yale Budget Lab estimates that these tariffs are costing American households an average of $2,000 per year. "These tariffs have already taken a significant economic toll," said one small business owner in California, who asked not to be identified. "Many of us have had to lay off staff or even close our doors entirely." Despite the short-term optimism, questions linger about the sustainability of the truce and the underlying issues in the US-China relationship. The agreement does not address fundamental trade disputes, leaving the possibility of renewed tensions in the future. Nevertheless, the temporary reprieve offers a glimmer of hope for businesses and consumers alike, providing some much-needed relief in the short term.