Trade Truce and Central Bank Divergence Create Uneasy Calm

Global trade gets a temporary breather as US and China extend their tariff truce by two months, but central banks are pulling in different directions—hiking rates to tame inflation while trade routes still face supply shocks.

Trade Routes

• US-China: Busan Agreement extended to January 2027, with Trump and Xi projecting "strategic stability" despite unresolved tensions
• Japan: Bank of Japan hiked rates to 1.25% (31-year high) but the Yen...