Geneva: The United States and China have agreed to significantly reduce tariffs on each other’s goods, marking a major step toward ending a protracted trade war that has disrupted global trade and shaken financial markets.
US Treasury Secretary Scott Bessent, speaking alongside US Trade Representative Jamieson Greer in Geneva, announced that the two countries had agreed to a 90-day pause on new tariff measures. As part of the agreement, the United States will reduce its tariff on Chinese imports from 145% to 30%, while China will lower its tariff on US goods from 125% to 10%.
"Both countries have protected their national interests while moving towards balanced trade," Bessent stated. "Neither side wants a decoupling, and we are committed to maintaining strong trade relations."
The negotiations marked the first in-person discussions between senior US and Chinese economic officials since US President Donald Trump resumed office, initiating a wave of aggressive tariff measures targeting China. The trade conflict escalated as China imposed export restrictions on critical rare earth materials and increased tariffs on US goods, leading to a near standstill in two-way trade worth approximately $600 billion.
Market reactions were swift, with US stock futures rising and the US dollar strengthening against other major currencies, reflecting optimism that the tariff reduction could help avert a global economic slowdown.
Bessent emphasized that the United States does not seek a complete decoupling from China. "Both sides have expressed a clear interest in balanced trade. As negotiations continue, we anticipate discussions on potential purchase agreements to further correct trade imbalances," he said.
