Trump, Xi Agree To 90-Day Trade War Pause

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Post on May 13, 2025

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Trump, Xi Agree to 90-Day Trade War Pause: A Temporary Truce or a Lasting Peace?

The ongoing US-China trade war took a dramatic turn on Saturday as President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce. This temporary ceasefire, announced following a high-stakes dinner at the G20 summit in Buenos Aires, offers a glimmer of hope for global markets, but the underlying tensions remain. The deal, however, is far from a complete resolution, leaving many questions unanswered about the future of the trade relationship between the world's two largest economies.

Key Points of the Agreement:

• 90-Day Negotiation Period: The agreement grants both sides 90 days to negotiate a comprehensive trade deal. During this period, China has pledged to purchase a "very substantial" amount of agricultural, energy, and other products from the United States. The exact figures remain undisclosed, fueling speculation and analysis across financial markets.

• Tariff Increase Suspension: The United States will hold off on increasing tariffs on $200 billion worth of Chinese goods, scheduled to take effect on January 1st, 2019. This represents a significant concession from the Trump administration and offers immediate relief to businesses affected by the trade war.

• Intellectual Property Protection: China's commitment to addressing US concerns regarding intellectual property theft and forced technology transfers is a crucial aspect of the agreement. The details of these commitments remain vague, raising concerns about their enforceability.

• Unresolved Issues: Despite the temporary truce, major sticking points remain. These include China's industrial subsidies, its state-owned enterprises' dominance in key sectors, and the broader question of fair market access for US companies in China. The 90-day period will be crucial in addressing these complex issues.

Market Reactions and Expert Opinions:

Global markets reacted positively to the news, with stock markets experiencing a significant rally. However, analysts remain cautious, highlighting the fragility of the agreement and the numerous challenges that lie ahead. Many experts are emphasizing the need for concrete and verifiable progress during the 90-day negotiation period to avoid a relapse into full-blown trade conflict. The success of the negotiations will hinge on the ability of both sides to compromise and build trust.

What Happens Next?

The next 90 days will be crucial. Both sides must engage in serious negotiations, addressing the core issues that have fueled the trade war. Failure to reach a mutually acceptable agreement by the deadline could lead to the re-imposition of tariffs, further escalating tensions and harming global economic growth. The world watches with bated breath, hoping for a lasting resolution that benefits both the United States and China, and the global economy as a whole. The outcome will significantly impact global trade, investment, and the overall geopolitical landscape. The coming months will be critical in determining whether this truce marks a turning point or simply a temporary reprieve in the US-China trade conflict.

Keywords: Trump, Xi Jinping, Trade War, US-China Trade, G20 Summit, Tariffs, Trade Negotiations, Intellectual Property, Global Economy, Market Reaction, 90-Day Truce, Buenos Aires, Economic Sanctions.