Is a New Plaza Accord Coming?
Inside the U.S.-China 90-Day Trade Truce — Strategy, Leverage, and What Happens Next
“When China’s economy falters, Washington doesn’t step back — it steps in.”
— Global Market Analyst, Atlantic Council
Quick Take:
- 90-day U.S.-China tariff rollback announced
- Markets surge on short-term relief
- Currency and trade imbalance now under global scrutiny
- Experts discuss prospects of a new Plaza Accord
Tariff Pause or Strategic Pause?
On May 12, 2025, U.S. and Chinese officials agreed to de-escalate the trade war, cutting tariffs for 90 days:
- U.S.: 145% → 30% on Chinese goods
- China: 125% → 10% on U.S. products
Source: AP News
Are We Headed for a New Plaza Accord?
The 1985 Plaza Accord realigned currencies and global trade flows. In 2025, the imbalance is back — but the players and stakes are different.
- U.S. seeks dollar stabilization + job reshoring
- China wants currency stability + demand growth
- Joint alignment? Difficult, but not impossible
Analysis: The Diplomat
China’s Playbook: Domestic Demand & Cautious Yuan
- Stimulus to boost retail spending
- Housing incentives and tax breaks
- Stable, yet flexible yuan management
- Limited tolerance for large capital outflows
Source: Reuters
U.S. Strategy: Reshoring, Incentives, IP Pressure
- Tax credits for American manufacturers
- Semiconductor and clean energy investments
- Tariff leverage to push for IP transparency
- Reduce reliance on Chinese supply chains
Source: The Guardian
What the Experts Say
- PBS NewsHour: “The truce buys time, not solutions.”
Read More - Atlantic Council: “90 days of calm before real choices hit.”
Analysis - Business Insider: “Wall Street relief is real, but temporary.”
Market Insight
What Comes Next? Watch These Signals
- U.S. manufacturing job trends
- Chinese consumer recovery metrics
- Yuan movement vs USD
- Will the “truce” extend beyond 90 days?
Conclusion: The Truce Is Just the Beginning
What we’re seeing isn’t a peace deal — it’s geopolitical chess in slow motion.
China is trying to buy time to stabilize.
The U.S. is positioning to restructure global supply lines.
And the world is holding its breath, watching for the next move.
Tags
#USChina #PlazaAccord #TariffTruce #Reshoring #GlobalTrade #YuanWatch #Geoeconomics #SupplyChainShift #ChinaSlowdown #ManufacturingPolicy
Newsletter Summary
The U.S. and China hit pause on the trade war.
But behind the scenes, both are recalibrating strategies for the next global economic chapter. Is this a modern Plaza Accord in the making? Read our full breakdown to stay informed.
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