In a major relief for global trade, the United States and China have agreed to extend their tariff truce for another 90 days. The decision, reached after weeks of quiet talks, will postpone any new import duties between the world’s two largest economies. This move aims to give negotiators more time to address long-standing trade disagreements, particularly on technology, intellectual property, and agricultural goods.
Image Source:India Today
The news sparked a surge in stock markets worldwide. Japan’s Nikkei index hit an all-time high, while European shares saw significant gains. In Australia, markets hovered near record levels, although the Australian dollar slipped slightly after the Reserve Bank of Australia cut interest rates by 25 basis points.
Economists believe this truce extension will reduce uncertainty for businesses and investors, at least temporarily. However, they warn that failure to reach a permanent agreement could reignite trade tensions later this year.
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