**London, UK** – After 48 hours of intense negotiations, the U.S. and China have temporarily eased trade tensions, but the reprieve may be short-lived. Both sides have agreed to a partial rollback of tariffs, but experts warn the deal is a **"Syria-style ceasefire"**—precarious and prone to collapse at any moment.
### **Temporary Truce, But the Bomb is Ticking**
- **Tariffs Slashed (For Now):**
- U.S. punitive tariffs on Chinese goods drop from **145% to 30%**.
- China’s retaliatory tariffs on U.S. imports fall from **125% to 10%**.
- **Rare Earths Leverage:**
- The U.S. loosens restrictions on rare earths, while China allows **limited exports from Shenzhen**.
- **August 10 Deadline:**
- If no deal is reached by then, **all tariffs snap back**, potentially even higher.
### **Behind the Smiles, the Knives Are Out**
Despite the surface-level détente, **both sides continue economic warfare**:
- **U.S. maintains bans** on advanced chips and aircraft equipment.
- **China’s May exports to the U.S. plunged 34.5%**, but its rare earth dominance forces Washington back to talks.
- **U.S. courts still back 34% "standard" tariffs**, a looming threat if negotiations fail.
### **Global Panic: "Another Shock Could Put Economy in ICU"**
- **World Bank slashes 2025 global growth forecast to 2.3%**, citing trade war risks.
- **ECB President Lagarde warns** of a potential global recession if tensions escalate.
- **EU, Japan, Mexico plead with U.S.** to de-escalate—markets are **on a knife’s edge**.
### **Market Reactions: Rare Earths Soar, Dollar Stumbles**
- **Rare earth stocks surge** as China flexes its supply chain dominance.
- **U.S. companies quietly stockpile goods**, bracing for an **August 10 explosion**.
- **Dollar weakens** amid uncertainty—traders hedge against a full-blown relapse.
### **Expert Verdict: "This Peace is an Illusion"**
Analysts call the truce a **"time bomb"**—deep structural disputes remain unresolved. **Everything hinges on the next six weeks.** If talks collapse, **markets will face a brutal reckoning.**
**Will the fuse burn out or ignite a full-scale trade war?** Stay tuned—**August 10 is D-Day.**
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