US and China Agree to 90-Day Tariff Truce in Bid to Ease Trade Tensions

In a significant development that has sent ripples of cautious optimism through global markets, the United States and China have announced a mutual agreement to significantly slash tariffs on each other’s goods for a 90-day period. The announcement came after two days of high-level trade talks held in Geneva, signaling a potential de-escalation in the protracted trade war between the world’s two largest economies.

US Treasury Secretary Scott Bessent, speaking to reporters after the conclusion of the discussions, confirmed the breakthrough. “We have reached an agreement on a 90-day pause, and to substantially move down tariff levels,” Secretary Bessent stated. He further elaborated that both sides would reduce their reciprocal tariffs by a substantial 115 percentage points during this period.

While details are still emerging, reports indicate that the US will reduce its tariffs on Chinese goods from the previously imposed 145% down to a base of 30%. China, in a reciprocal move, is expected to lower its tariffs on US goods to 10% and suspend additional tariffs for the 90-day window.

This agreement marks a notable shift from the aggressive trade policies pursued by the US in recent times, including the across-the-board tariffs imposed on imports from numerous countries. The trade dispute with China, in particular, has been a major source of concern for global financial markets and businesses on both sides, disrupting a trade relationship that exceeded $660 billion last year.

The decision to engage in these talks was reportedly initiated by the US side, with China agreeing to the discussions taking into account global expectations, national interests, and appeals from US businesses and consumers. While the agreement offers a temporary reprieve, the official Xinhua News Agency cautioned that China’s commitment to safeguarding its development interests and maintaining the global economic order remains unwavering.

Experts believe this 90-day window provides a crucial opportunity for both nations to engage in more in-depth negotiations aimed at resolving the underlying issues that sparked the trade war. Even a small reduction in tariffs is seen as a positive signal that could pave the way for a more comprehensive trade deal.

However, a separate 20% tariff imposed by the US on Chinese goods, citing concerns over fentanyl, will remain in place, meaning the total levy on Chinese goods will be 30% during this truce.

The coming weeks will be critical in determining whether this temporary agreement can translate into a lasting resolution to the trade tensions that have gripped the global economy for years. For now, businesses and markets will likely welcome this move as a step in the right direction, hoping for a more stable and predictable trade environment in the near future.#USChinaTrade #TradeWar #Tariffs #GlobalEconomy #WorldTrade #InternationalTrade #Economy #BusinessNews #USTariffs #ChinaTariffs #90DayDeal #TradeAgreement #TariffSlash #TradeRelief