🧭 Trade War Thaws: What the U.S.–China Tariff Truce Means for Global Shoppers

In a surprising turn of events, the United States and China have agreed to a 90-day pause in their escalating trade war, slashing tariffs and signaling a potential shift toward economic cooperation.

📉 Tariffs Rolled Back

As of May 12, 2025, both nations have significantly reduced tariffs on each other's goods. The U.S. has lowered tariffs on Chinese imports from a peak of 145% to 30%, while China has reduced its tariffs on U.S. goods from 125% to 10%.Additionally, the U.S. has cut tariffs on small parcels from China—known as "de minimis" shipments—from 120% to a range of 54%–120%, affecting items valued under $800.

✈️ Boeing Back in Business

China has lifted its ban on Boeing aircraft deliveries, a significant move following the tariff reductions. This decision allows Boeing to resume shipments to China, a market that previously accounted for a substantial portion of its business.

📈 Market Reactions

The announcement has positively impacted global markets. Stocks of companies like Amazon and Meta have seen gains, with Amazon's shares rising over 2% and Meta's increasing by more than 3%. Economists have also adjusted their forecasts, with Goldman Sachs reducing the odds of a U.S. recession to 35% and revising the 2025 GDP growth forecast from 0.5% to 1%. Business Insider

🛍️ Implications for Consumers

For consumers, the tariff reductions mean potential price decreases on a variety of goods, especially electronics, fashion, and home essentials. Retailers like Shein and Temu, which heavily relied on the "de minimis" loophole, may pass on savings to shoppers, making trendy items more affordable.

🧭 Looking Ahead

While the 90-day truce offers a respite, underlying issues remain unresolved. The temporary nature of the agreement means that uncertainties persist, and businesses are cautiously optimistic as further negotiations unfold.

Stay tuned to Dhonv3li for more updates on global trade developments and their impact on your shopping experience.