(Rightallegiance.com) – In a significant development for international trade, President Donald Trump announced on May 12, 2025, that China has agreed to fully open its markets to American businesses. This announcement follows high-level trade negotiations between U.S. and Chinese officials in Geneva, resulting in a 90-day mutual reduction of tariffs.
Tariff Reductions: The United States will reduce tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on American goods from 125% to 10%.
Market Access: President Trump emphasized that China has agreed to “open itself up to American business,” marking a potential shift in the bilateral trade relationship.
Non-Tariff Barriers: The agreement includes China’s commitment to suspend and remove non-monetary trade barriers, facilitating easier access for U.S. companies.
Duration: The tariff reductions are set for a 90-day period, during which further negotiations are expected to solidify a long-term trade agreement.
The announcement led to a surge in global financial markets. The Dow Jones Industrial Average rose over 950 points (2.3%), the Nasdaq increased by 3.7%, and the S&P 500 climbed 2.7%. Investors responded positively to the easing of trade tensions and the potential for increased market access.
President Trump indicated plans to speak with Chinese President Xi Jinping later in the week to discuss further details of the agreement. Both nations have expressed a desire to continue negotiations to establish a more permanent and comprehensive trade relationship.
This development marks a significant step toward resolving ongoing trade disputes between the United States and China, with the potential to reshape global economic dynamics.