• The US and China will reduce tariffs on each other's goods for 90 days as part of a temporary truce.
• US tariffs on Chinese goods will drop from 145% to 30%, while China will lower its tariffs to 10%.
• President Trump claims this deal opens up China's economy to US businesses, despite ongoing tensions.
• Analysts caution that this agreement does not resolve deeper economic conflicts between the two nations.
• Concerns remain about the potential for tariffs to be reinstated after the 90-day period ends.

The United States and China have agreed to a temporary truce that includes slashing tariffs on each other’s goods for 90 days. The reductions came into effect on May 14, 2025, following crucial talks in Geneva, marking a significant de-escalation in their ongoing trade war that has disrupted global markets and supply chains, according to channelnewsasia, Bangkok Post, and The Jakarta Post.

Under the new agreement, US tariffs on Chinese imports will be reduced to 30%, down from as high as 145%, while China will cut its tariffs to 10%. President Trump expressed his optimism about the negotiations, suggesting that the deal opens the door for increased US access to the Chinese market, which he described as a "very, very strong" trade arrangement, according to TRT Global, channelnewsasia, and NY Times.

However, the agreement does not eliminate the underlying issues that have characterized US-China relations, including technological competition and military posturing in Asia. Analysts warn that the 90-day truce could simply be a temporary respite amid an ongoing rivalry, as deeper structural tensions remain unresolved. Wu Xinbo from Fudan University noted that the truce validates Beijing’s strategy against perceived "economic bullying" by the US, emphasizing the necessity for both parties to prepare for future confrontations, according to South China Morning Post and channelnewsasia.

Market reactions to the deal have been mixed, with some Asian shares rising in cautious optimism while analysts continue to caution about the uncertainty that could follow. The temporary tariff cuts are expected to ease inflationary pressures in the US and revive some investor confidence, but without a comprehensive resolution to the trade disagreements, concerns linger about future tariff re-impositions, as noted by Brian Coulton from Fitch Ratings, according to TRT Global and Bangkok Post.

In conclusion, while both nations herald the tariff reductions as a form of victory, significant economic differences still complicate relations, and the structural challenges between the US and China suggest that further negotiations will likely be fraught. Both sides seem to agree on the need for ongoing dialogues, but the landscape remains tense, with the risk of escalation still very present, according to NY Times and South China Morning Post.