US-China Trade Truce: A Step Towards Economic Harmony

US and China have agreed to reduce tariffs and establish a 90-day truce in the trade war to pave the way for further negotiations. Markets responded positively, boosting stock values. This agreement aims at a more balanced trade relationship while potentially easing global economic tensions.

US and Chinese officials announced on Monday a breakthrough in their ongoing trade dispute, agreeing to lower tariffs and establish a 90-day truce. This temporary resolution aims to foster further negotiations between the two global economic giants.

Stock markets responded favorably, with a notable increase in indices across the board. The US agreed to slash its tariff rate on Chinese goods from 145 percent to 30 percent, while China reciprocated by lowering its rate on American goods to 10 percent.

The initial reactions to the agreement are positive, but experts caution against over-optimism, noting that the truce is temporary and unresolved issues remain. Nonetheless, the move signifies a step toward stabilizing volatile international trade relations.

(With inputs from agencies.)