The US and China reached a preliminary trade agreement in Geneva after two days of intense negotiations, according to US officials announced on May 11, 2025. This deal has the potential to ease tensions between these two major economies, with significant implications for global markets. The specifics of the agreement are still emerging, but experts suggest it could lead to reduced tariffs and increased cooperation in trade relations. The deal comes after a period of escalating economic tensions between the US and China, which have led to the imposition of high tariffs by the US on goods from China. Economists anticipate this agreement will help reduce the US trade deficit, potentially creating a more stable trading relationship with China.