The US-China tariff truce is a tactical pause, not a final deal but for markets, but it’s a meaningful de-escalation. While the structural issues remain unresolved, the signal is clear: neither side wants to push trade tensions further. Slashing duties from 145% to 30% (US) and 125% to 10% (China) marks a dramatic de-escalation, likely aimed at calming markets and averting further economic drag.
Still, follow-through matters more than headlines. The deal is still short on detail, and it’s unclear what an “acceptable” outcome looks like for either side. China wants full rollback; the US is still chasing trade balance and enforcement tools. The 90-day cool-off echoes 2018’s ceasefire which ultimately collapsed into deeper conflict before “Phase One” was signed. Talks may result in “purchasing agreements,” but past experience (like the short-lived 2018 détente) shows how fragile these deals can be. With both sides keeping legacy tariffs in place and core disagreements unresolved, the road to a durable accord remains long. This time could be different, but without a clear framework or binding terms, the risk of déjà vu lingers.
Still, if this truce holds, it’s a real tailwind for global risk assets, especially exporters, cyclicals, and supply chain-sensitive sectors.
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.