The US and China have reached a 90-day truce, reducing tariffs to 30% on Chinese goods and 10% on American imports.
US and China announce major tariff reductions in 90-day trade truce
The US and China have agreed to significant tariff reductions, offering relief for businesses and boosting global markets.
The announcements, made public on Monday, signal a willingness from both sides to engage in constructive dialogue and seek a more balanced economic relationship.
Details of the tariff reductions
According to reports, the United States will reduce tariffs on most Chinese goods from a staggering 145% to 30% for a 90-day period.
China, in turn, will lower its levies on American imports from 125% to 10%.
These dramatic cuts represent a considerable step back from the punitive measures that have characterized the trade dispute in recent years.
The Sun reports the US has agreed to slash Trump’s tariffs by 115% for 90 days.
The agreement was forged during talks held in Geneva over the weekend.
Key figures involved in the negotiations included U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng.
Both sides hailed the talks as productive, with Secretary Bessent reporting “substantial progress” made in addressing the complex issues at hand.
White House emphasizes commitment to future cooperation.
In a statement released on Monday, the White House emphasized the importance of a “long-term, and mutually beneficial economic and trade relationship” with China.
The statement further indicated that both countries are committed to “continued communication, cooperation, and mutual respect” as they move forward.
Markets respond positively amid cautious optimism from investors.
Financial markets responded positively to the news of the tariff reductions.
S&P 500 futures gained between 1.1% and 1.4%, while Nasdaq futures rose by 1.4% to 1.9% in early trading.
These gains reflect investor relief and optimism regarding the potential for a thaw in relations between the world’s two largest economies.
However, analysts caution that the 90-day window underscores the provisional nature of the agreement, and market sentiment remains cautiously optimistic.
The tariff cuts include sensitive sectors such as products linked to fentanyl, indicating a broad effort to address key areas of concern for both countries.
The tariff cuts offer temporary relief, helping importers and exporters operate with more confidence in the global market.
China emphasizes stability and ongoing economic cooperation.
China has reiterated its commitment to the stability of Sino-U.S. relations, emphasizing that threats are not the right approach to dealing with Beijing.
China’s new white paper says it can handle U.S. tariffs and stresses its commitment to mutual respect in U.S.-China relations.
The agreement comes after months of escalating tensions and tit-for-tat tariff increases between the two countries.
The trade war has had a significant impact on global supply chains, economic growth, and investor confidence.
The current truce offers a glimmer of hope that a more permanent resolution can be reached.
US and UK finalize a new trade deal.
Reports also suggest that the agreement comes just days after the US revealed a “full and comprehensive” trade deal with Britain.
While the tariff reductions are a welcome development, significant challenges remain.
The two sides must address IP, market access, and trade imbalances to reach a lasting, balanced trade agreement.
The White House will release more details, with markets closely monitoring for clarity on next steps.