Treasury yields soar as U.S. and China agree to slash tariffs
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US, China Agree to Slash Tariffs in 90-Day Trade Truce
Above: Scott Bessent (R) and Jamieson Greer hold a news conference in Geneva on May 12, 2025. Image copyright: Fabrice Coffrini/Contributor/AFP via Getty Images
The Spin
Pro-establishment narrative
This 90-day truce is a strategic win for American interests as it strengthens U.S. economic leverage, supports domestic industries, and fosters fairer trade practices. Additionally, it addresses longstanding trade imbalances, reinforces the Trump administration's "America First" trade policy, stabilizes markets, and fosters continued negotiations on critical issues.
Pro-China narrative
This is a significant breakthrough in U.S.-China trade relations, which is expected to stabilize bilateral trade, benefiting producers and consumers alike. The establishment of a new consultation mechanism would ensure ongoing dialogue and cooperation, fostering a more predictable and mutually beneficial economic relationship.