US and China Agree to 90-Day Trade Truce in Bid to De-Escalate Economic Tensions

Geneva, May 12, 2025 — The United States and China have reached a landmark agreement to pause their intensifying trade war, agreeing to a 90-day truce that includes significant tariff reductions and a renewed commitment to dialogue.

Following tense negotiations in Geneva, both sides confirmed a temporary rollback of the steep tariffs that have strained global supply chains and triggered market volatility. The agreement marks a rare moment of cooperation between the world’s two largest economies amid escalating geopolitical tensions.

Key Elements of the Deal:

• The United States will reduce its tariffs on Chinese imports from a peak rate of 145% down to 30%.
• China will cut its tariffs on American goods from 125% to 10%.
• A 20% tariff on Chinese goods linked to the US’s accusations over China’s role in the fentanyl crisis will remain in place.
• Both nations pledged to resume regular economic dialogue and avoid any further escalation during the 90-day period.

The deal was reached against the backdrop of mounting economic pressure, with both countries experiencing the side effects of their tit-for-tat tariff war. Business leaders and financial markets responded positively to the news, with China’s yuan rising to a six-month high and European stock indices climbing amid renewed investor confidence.

Energy and commodity markets also reacted swiftly. Prices for crude oil and iron ore surged, reflecting optimism over improved global trade flows.

In Beijing, Chinese officials hailed the agreement as a constructive step forward, while cautioning that deeper disagreements over industrial policy, technology access, and intellectual property rights remain unresolved.

US officials echoed a similarly cautious optimism, with the White House describing the deal as a “strategic pause” rather than a full resolution. Former President Donald Trump’s previous administration was known for aggressive tariffs on Chinese goods, many of which are now being re-evaluated under current leadership.

The truce offers a vital window for both nations to address their long-standing disputes and potentially lay the groundwork for a more stable and balanced trading relationship. Whether the pause leads to lasting peace or merely delays further confrontation will depend on the outcome of the next round of negotiations.

Keir Starmer Unveils Sweeping Immigration Reforms to Slash Net Migration

Prime Minister Keir Starmer has unveiled a wide-ranging overhaul of the UK’s immigration system, vowing to reduce net migration figures “significantly” before the next general election.

In a direct challenge to the legacy of previous Conservative administrations, Starmer said his government is “taking back control” of immigration through a pragmatic and targeted plan focused on workforce needs, border control, and long-term sustainability.

The Home Office released a 69-page white paper outlining several major policy changes:

• The salary threshold for Skilled Worker visas will be raised.
• The Immigration Salary List will be scrapped.
• New visa applications for overseas care workers will be banned.
• Tighter restrictions will apply to international students and family visas.
• Asylum, deportation, and English-language rules will be tightened.
• The qualifying period for settlement and citizenship will be extended from five to ten years, under a new contributions-based points system.

These changes are estimated to reduce net migration by approximately 100,000 people annually.

Starmer rejected claims that the reforms were a reaction to rising support for Reform UK, saying the changes represent a long-planned commitment to balance fairness with control. He also distanced Labour’s new stance from previous party policies that were more lenient toward immigration.

“This is not about short-term politics,” Starmer said. “It’s about building an immigration system that works for working people and invests in the skills of those already here.”

The announcement has sparked backlash from trade unions and social care leaders, who warn that cutting off overseas recruitment in critical sectors like health and social care could worsen staffing shortages and strain already pressured services.

Despite the criticism, the government insists the reforms are necessary to reduce reliance on migrant labour and boost domestic training and employment.

Labour’s proposals signal one of the biggest shifts in the party’s approach to immigration in decades. As the UK grapples with post-Brexit workforce challenges, the new measures aim to redefine how and why people are granted access to live and work in the country.

Starmer concluded by reaffirming his goal of a system that is “firm, fair, and focused on Britain’s future.”

India and Pakistan Agree to Immediate US-Brokered Ceasefire Amid Kashmir Escalation

India and Pakistan have agreed to an immediate ceasefire following a rapid escalation in hostilities, particularly in the disputed region of Kashmir. The agreement, brokered by the United States, was announced on Saturday and hailed by international leaders as a vital step toward stabilizing the region.

US President Donald Trump confirmed the truce in a public statement, crediting Vice President JD Vance and Secretary of State Marco Rubio for their roles in securing the breakthrough. “Both India and Pakistan have agreed to halt all offensive operations with immediate effect,” President Trump stated. “We commend their decision to prioritize peace.”

The ceasefire follows a series of deadly exchanges that erupted after a terrorist attack in the Pahalgam area of Indian-administered Kashmir on April 22, which left 26 civilians dead. India blamed the Pakistan-based militant group Lashkar-e-Taiba and launched retaliatory strikes under what it dubbed “Operation Sindoor.” Pakistan responded with “Operation Bunyan Ul Marsoos,” targeting Indian military infrastructure.

The tit-for-tat strikes over the past two weeks have resulted in significant civilian casualties on both sides, with estimates placing the death toll at over 60. Thousands of residents were displaced, and both countries closed their airspaces to commercial traffic, triggering widespread flight disruptions.

Celebrations erupted in parts of Pakistan following the ceasefire announcement, particularly in Hyderabad, where citizens expressed relief after days of fear and uncertainty. Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar confirmed that the ceasefire was effective immediately and emphasized Pakistan’s commitment to de-escalation.

Despite the official statements, tensions remain high. Reports from the region suggested fresh explosions and shelling in Kashmir just hours after the truce was declared, with both countries accusing each other of violations. While these reports have not been independently verified, they cast doubt on how firmly the agreement will hold.

Global leaders from the UK, Saudi Arabia, Turkey, and China have joined calls for restraint, urging both nations to maintain open communication and resolve their differences through diplomatic channels. Analysts warn, however, that while the ceasefire may pause active conflict, it does not address the deeper, unresolved issues at the heart of Indo-Pakistani relations.

As both nations navigate this fragile peace, the world will be watching closely to see whether the ceasefire marks the beginning of a new chapter — or a temporary lull in an enduring and dangerous rivalry.