WASHINGTON – In key development that could reshape global trade dynamics, United States and China reached an agreement to cut tariffs on each other’s goods, in a major de-escalation in trade conflict.
The stand-off between two leading economies sent shockwaves across the globe but after high-level talks in Geneva, UA Treasury Secretary Scott Bessent announced that both countries agreed to a 90-day pause on further trade actions.
Reports shared by international media said existing tariffs will be cut by more than 100 percentage points, bringing them down to 10pc to restore stability to international markets and revive nearly $600 billion in two-way trade that has been paralyzed by mutual restrictions.
“Both sides protected their national interests while recognizing importance of restoring balanced trade,” official said.
US Presisdent Trump’s renewed tariff agenda had raised duties on Chinese imports to an unprecedented 145%, reigniting trade tensions that had initially surged during his first term. Beijing responded with counter-hits, slapping 125pc tariffs on American products and export limits on critical rare earth materials essential to American industries.
The prolonged dispute strained global supply chains, contributed to inflation fears, and triggered layoffs in sectors reliant on international trade. The recent breakthrough brought wave of relief to global markets.
US stock futures climbed sharply, and the dollar gained against traditional safe-haven currencies, reflecting investor optimism that the threat of a global recession could now recede.
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