On May 12, 2025, the U.S. and China reached a surprise tariff-cutting deal, sparking a global market rally. While investors saw it as a sign of easing tensions, K3 Lab sees it as a tactical pause, not a true resolution. Both nations are buying time: the U.S. to strengthen the dollar and finalize supply chain deals, and China to stabilize its economy. Once the 90-day truce ends, the U.S. may return with stronger pressure—making this rally a temporary calm before the storm.