GENEVA: China and the United States announced on Monday that they have reached a preliminary agreement to slash reciprocal tariffs, offering a much-needed reprieve in a prolonged trade war that has shaken global markets and disrupted economic forecasts.
Speaking to reporters after high-level negotiations in Geneva, U.S. Treasury Secretary Scott Bessent confirmed that the two sides had agreed to a 90-day pause on any new tariff measures. As part of the deal, both countries will reduce existing tariffs by more than 100 percentage points, bringing them down to 10%.
“Both countries represented their national interests very well,” Bessent said. “We both have an interest in balanced trade, and the U.S. will continue to move towards that.”
Bessent was joined by U.S. Trade Representative Jamieson Greer as the two praised the weekend talks, marking significant progress on narrowing economic differences. The Geneva negotiations were the first in-person meetings between senior economic officials from both countries since President Donald Trump’s return to office earlier this year.
Since January, President Trump had re-imposed and expanded tariffs on Chinese goods, raising them to 145% for certain imports — a dramatic escalation of earlier measures from his first term and those carried over from the Biden administration. In retaliation, China raised tariffs on U.S. imports to 125% and imposed export restrictions on key rare earth minerals vital to U.S. industries.
The tariff standoff halted nearly $600 billion in bilateral trade, strained global supply chains, and sparked concerns over stagflation and potential job losses in both economies.
Financial markets responded positively to news of the agreement. Wall Street stock futures climbed, and the U.S. dollar gained strength against traditional safe-haven currencies, as investors welcomed signs of easing tensions and renewed hopes of averting a global recession.
