CNN
U.S. and China make a trade truce: what might the future of the economy hold?
JUNE 25, 2025, 8:00 A.M.
The governments of the United States and the People's Republic of China met in Geneva on May 10th to discuss de-escalating the ongoing trade war with a truce. Since tensions stemming from the first Trump Administration’s tariffs, which aimed at changing China’s unfair trade practices, have worsened in the past few months, many are eager for a solution.
Both parties agreed to a total reduction for a period of 90 days, where China will impose 10 percent on U.S. goods and the United States will impose 30 percent on Chinese goods.
This progress has eased market fears of trade breakdown, including concerns about supply chain disruptions and shortages like those during the peak of COVID-19. Experts now expect a surge in U.S imports from China as retailers restock and brace for possible inflation.
“I think it's good that both sides are moving to reduce tension," EBHS Sophomore Ananya Kasetty said. "Trade issues like this can affect prices and availability of everyday things. It’s better for everyone if both countries find a way to cooperate.”
Despite the diplomatic efforts, disagreements continue to complicate what was meant to be a peaceful truce. The U.S recently put restrictions on AI chips from Huawei, a Chinese technology company, which China considered to be economic suppression.
“I feel both sides should understand one another,” EBHS Sophomore Alyssa Maung said. “Taking initiative to decrease the build up of tariffs is one thing, but they should try to understand each other's actions, like the AI chip restriction, to make this possible.”
As issues and solutions of trade progress, hope emerges for ease of tensions, not only between businesses, but also the people of these countries. As the future of consumerism faces negative or positive impacts, it is up to the United States and Chinese governments to make the best economic decisions for their residents.
