Another Step in the Right Direction for U.S. - China Trade

At Rezny Wealth Management, we’ve been closely following the ongoing tensions between the United States and China. In our last blog, we mentioned that while a full trade agreement may still be far off, small steps toward cooperation are still worth watching. This week, we saw one of those steps.

On Monday, the U.S. and China agreed to temporarily lower tariffs on each other’s goods for 90 days. This decision came after important meetings between officials in Geneva, Switzerland.

What’s Happening?

For the next three months, the U.S. will lower tariffs on goods from China—from as high as 145% down to 30%. In return, China will cut its tariffs on U.S. products from 125% to just 10%.

While this may sound like a big move, it’s important to remember that this is not an official trade deal. However, it’s another sign that both sides are open to working things out—which is a good sign for global markets and investors.

Why It Matters

Both countries said they want a fair and long-term trade relationship. They also agreed to keep talking. A new team of leaders from both sides—including officials from the U.S. Treasury and China’s top economic advisors—will lead future discussions. These talks could happen in the U.S., China, or even in a neutral location if needed.

The U.S. and China also said they would remove other types of trade barriers that had been put in place earlier this year.

How Did We Get Here?

This temporary agreement follows several months of rising trade tensions. Earlier in the year, President Trump placed high tariffs on many countries, including China. China responded by doing the same to U.S. goods.

Most other countries chose not to fight back, but China did. That led to both sides raising tariffs even more—up to 125% at one point.

Now, with this 90-day pause, it seems both sides are ready to take a breather and talk things through.

What It Means for Investors

At Rezny Wealth Management, we see this as a positive development, even if it’s not a full solution. It shows that both sides recognize the importance of finding common ground. And while nothing is guaranteed, continued conversations are better than continued conflict.

We’ll keep an eye on how these talks unfold and what it could mean for markets going forward.

General informational content only. Not tax, legal, or investment advice. Consult a financial professional before making investment decisions. Conduct due diligence. All investments involve risk, including potential loss of principal.