US, China Agree to Slash Tariffs for 90 Days to Ease Trade War Tensions
The United States and China have agreed to drastically reduce their retaliatory tariffs for a 90-day period, marking a major de-escalation in a prolonged trade war.
The war which has shaken global financial markets and sparked fears of a worldwide economic slowdown.
PRNigeria gathered that the breakthrough came after high-level talks over the weekend in Geneva between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, alongside trade envoy Li Chenggang.
It was the first formal negotiation since U.S. President Donald Trump launched a sweeping tariff offensive last month.
In a joint statement released Monday, both sides confirmed they would cut back their steep tariffs—previously set at triple-digit levels—to more moderate two-digit figures.
The U.S. will reduce its tariffs on Chinese imports from 145 percent to 30 percent, while China will lower its tariffs on U.S. goods from 125 percent to 10 percent.
Secretary Bessent hailed the talks as “productive” and “robust,” emphasizing that “both sides showed great respect” throughout the negotiations. He said the agreement includes a mechanism for continued dialogue on economic and trade matters.
The Chinese Ministry of Commerce welcomed the progress, calling it “substantial” and “in the interest of both countries and the global economy.”
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The ministry expressed hope that the U.S. would stay committed to correcting what it called “the wrong practice of unilateral tariff rises.”
The deal sent financial markets into rally mode. U.S. stock futures surged, the dollar recovered some of its losses from April, and European and Asian markets responded positively to the news.
The World Trade Organization (WTO) also praised the agreement, with Director-General Ngozi Okonjo-Iweala describing it as a “significant step forward” that could have far-reaching benefits beyond Washington and Beijing. “This progress is important not only for the U.S. and China but also for the rest of the world, including the most vulnerable economies,” she said.
The Geneva talks followed closely on the heels of another trade development, in which President Trump signed a new trade agreement with the United Kingdom—the first such deal since launching his global tariff blitz. While that agreement eased restrictions in select sectors, it left a 10 percent levy on most British imports intact, which the White House says could serve as a baseline for future deals.
Though President Trump had hinted on social media that an “80% Tariff on China seems right,” White House Press Secretary Karoline Leavitt later clarified that any tariff reductions would be reciprocal, not unilateral.
The 90-day cooling-off period is expected to provide both sides with breathing room to negotiate a more permanent resolution, as economists warn that failure to do so could reignite inflationary pressures and undermine global economic recovery.
By PRNigeria
