US, China Agree to Slash Tariffs Amid 90-Day Trade Truce
World’s top economies reach breakthrough in Geneva, easing global tensions and market fears
The United States and China on Monday announced a deal to slash reciprocal tariffs and pause new trade measures for 90 days, marking a significant de-escalation in a trade war that has disrupted the global economy and unsettled financial markets.
Speaking after high-level talks with Chinese officials in Geneva, U.S. Treasury Secretary Scott Bessent said both countries had agreed to reduce tariffs by over 100 percentage points to 10%. “Both countries represented their national interest very well,” Bessent noted. “We both have an interest in balanced trade, and the U.S. will continue moving towards that.”
Bessent was accompanied by U.S. Trade Representative Jamieson Greer at the talks, where both sides hailed progress in narrowing economic differences.
The Geneva meetings were the first in-person engagement between senior U.S. and Chinese economic officials since President Donald Trump returned to power and reignited a global tariff offensive, especially targeting China.
Since assuming office in January, Trump had increased tariffs on Chinese goods to 145%, building upon those imposed during his first term and those sustained by the Biden administration. In retaliation, China raised tariffs on U.S. imports to 125% and introduced export curbs on rare earth elements crucial to American industries.
The protracted dispute brought nearly $600 billion in bilateral trade to a virtual halt, severely disrupting supply chains, triggering layoffs, and raising fears of stagflation.
Monday’s announcement sparked optimism on Wall Street, with stock futures climbing and the U.S. dollar strengthening against traditional safe-haven currencies, as markets welcomed the potential easing of tensions and a reduced risk of global recession.