US & China Tariff Reduction Fuels Market Recovery, Recession Fears Lowered

A landmark agreement between the U.S. and China to reduce tariffs for 90 days has sent shockwaves through global markets, signaling a potential end to the economic uncertainty that had gripped them recently. This truce is expected to have a significant impact on market expectations regarding a recession in the U.S., which now faces a significantly lower probability of occurring by 2025. This reduction in trade tensions has been credited for this shift. The agreement saw the U.S. lowering tariffs on Chinese goods from 145% to 30%, while China in turn reduced tariffs on U.S. imports from 125% to 10%.