In May 2025, the U.S. and China agreed to reduce their high tariffs—previously as high as 145%—to 30% and 10%, initiating a 90-day grace period. While markets welcomed the move as a ceasefire, it is more accurately a strategic pause for both sides to prepare for a broader conflict. The U.S. aims to finalize alternative supply chains and lower interest rates to offset inflation and recession risks. Meanwhile, China is securing energy sources, building export detours, and reinf