Overview
- President Donald Trump has announced a substantial reduction of the 145% tariffs on Chinese imports, describing them as excessively high.
- China's Ministry of Foreign Affairs stated that its 'doors are wide open' for negotiations but emphasized its readiness to respond if talks fail.
- The International Monetary Fund (IMF) has revised its 2025 global growth forecast to 2.8%, citing trade tensions and unprecedented uncertainty as significant economic risks.
- The IMF also highlighted the potential for financial instability and social unrest if trade disputes escalate further, endorsing the Federal Reserve's cautious approach to rate cuts.
- Asian markets rebounded following Trump's announcement, reflecting cautious optimism about a possible de-escalation in U.S.-China trade tensions.