US and China Agree to 90-Day Tariff Reduction

US and China Reach Temporary Tariff Truce in Geneva Geneva, Switzerland – In a significant development in US-China relations, both countries announced a temporary agreement to lower tariffs on select goods. The deal, reached after marathon negotiations over the weekend, involves a 90-day pause on escalating trade tensions. US Treasury Secretary Scott Bessent confirmed the agreement, stating, “We have reached an agreement on a 90-day pause.” A joint statement released by both governments detailed the specifics. The US will lower tariffs on some Chinese goods from 145% to 30%, while China will reduce tariffs on certain US goods from 125% to 10%. The agreement marks a rare moment of cooperation between the two economic giants, with the last joint statement on trade dating back to 2018. Early market reactions indicate investor optimism, suggesting a positive outlook on the potential for de-escalation in trade disputes. This temporary truce provides a window of opportunity for further negotiations and a potential path toward a more stable and mutually beneficial economic relationship.