The United States and China announced on Monday a significant breakthrough in their ongoing trade dispute, agreeing to temporarily slash the steep tariffs each country had imposed on the other’s goods. Following high-level negotiations in Geneva, both sides declared a 90-day suspension of most of the recent tariffs, marking a notable de-escalation in a trade war that has rattled global markets and threatened the stability of the world’s two largest economies.
Under the terms of the agreement, the United States will reduce its tariff on Chinese imports from 145% to 30%, while China will lower its tariffs on American goods from 125% to 10%. This rollback will take effect by Wednesday and is intended to provide a window for further negotiations aimed at resolving deeper trade tensions. Existing tariffs from before April 2 and certain other trade restrictions will remain in place, but most of the punitive measures enacted during the recent escalation will be suspended for the duration of the truce.
The announcement was met with relief in financial markets, as investors welcomed the prospect of renewed dialogue and reduced economic friction. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, who led the American delegation, emphasized the mutual interest in avoiding a complete decoupling of the two economies. “We concluded that we have a shared interest,” Bessent said at a Geneva news conference, stressing that neither side desires a trade blockade and both are committed to promoting equitable trade.
Despite the positive momentum, experts caution that the outcome of the 90-day negotiation window remains uncertain. While the agreement represents a substantial de-escalation, tariffs are still significantly higher than pre-dispute levels, and the risk of renewed tensions persists if a comprehensive deal is not reached. Both governments have established a framework for ongoing consultations, with the hope that this temporary reprieve will lead to a lasting resolution of their trade differences.
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(Source: Reuters | USA Today | Associated Press)
