After extensive negotiations, the United States and China have successfully reached a significant trade agreement that has positively impacted global markets. Both nations have committed to drastically reducing tariffs for a period of 90 days. Specifically, US tariffs on Chinese imports will decrease from 145% to 30%, while China's tariffs on US goods will drop from 125% to 10%. These tariff reductions are effective immediately and represent a notable easing of trade tensions between the two countries.

As a result of the announcement, markets reacted with enthusiasm. US index futures experienced significant gains, rising between 2.7% and 4.2%, and global stocks followed suit with a rally. Conversely, safe-haven assets like gold saw a decline in interest, with prices falling by 3.2% during mid-morning trading in London.

Youtube: https://www.youtube.com/@VietForexSydney

US-China Agreement Weighs Heavily on Gold

May 18 2025