The United States and China have agreed to reduce their reciprocal tariffs by 10%, effective May 14, 2025, marking a significant step towards easing the trade war between the world’s largest economies. This agreement, announced by the White House, reduces US tariffs on Chinese goods from 145% to 30%, while China lowers duties on American products from 125% to 10%. The deal signifies a potential shift away from economic decoupling, which has historically impacted both nations’ economies negatively. As per Scott Bessent, US Treasury Secretary, neither side intends to be economically isolated. Cointelegraph reports that this development marks a significant thaw in the trade war and benefits risk assets globally.