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.

Reform UK Makes Major Gains in Local Elections as Labour and Conservatives Stumble

Reform UK has made a significant breakthrough in the 2025 local elections, securing more than 600 council seats and taking control of 10 local authorities, a development that signals a major shift in the British political landscape.

The party, led by Nigel Farage, capitalized on widespread voter dissatisfaction with both Labour and the Conservatives. In a major upset, Reform UK overturned a substantial Labour majority in the Runcorn and Helsby by-election, winning by just six votes — a result seen as emblematic of growing frustration with the political establishment.

Labour, despite being the party in government, experienced its worst local election performance in 15 years. Many within the party attribute the losses to controversial welfare reforms, including cuts to winter fuel payments, which have alienated traditional working-class voters.

The Conservative Party fared even worse, seeing its vote share collapse to just 17%. Senior figures within the party described the results as an existential crisis, pointing to a failure to reconnect with voters and a lack of compelling policy direction. Reform UK’s surge, particularly in traditional Conservative areas, has raised serious questions about the future of the party.

Reform UK’s campaign focused on rejecting net-zero targets, opposing diversity and inclusion roles in public services, and calling for strict immigration controls. While these positions have drawn strong support from some voters, the party is also facing criticism after reports emerged that several newly elected councillors had shared far-right and Islamophobic content online.

Meanwhile, the Liberal Democrats and the Green Party both made solid gains. The Lib Dems gained control of councils in Cambridgeshire, Shropshire, and Oxfordshire, while the Greens expanded their presence across multiple authorities.

As the dust settles, the local election results suggest that the dominance of Labour and the Conservatives is under increasing threat, with Reform UK now positioning itself as a serious challenger ahead of the next general election.