The United States and China have announced a 90-day agreement to lower reciprocal tariffs, marking a significant pause in their ongoing trade tensions.
A joint statement released Monday emphasized both countries’ commitment to a “sustainable, long-term, and mutually beneficial economic and trade relationship.”
Talks Held in Geneva
The announcement followed a weekend of talks in Geneva, Switzerland, aimed at de-escalating the trade war sparked by President Donald Trump’s “Liberation Day” tariffs announced in April. These measures had triggered market instability and raised fears of a U.S. recession.
Tariffs to Drop to 10%
Treasury Secretary Scott Bessent confirmed that both nations agreed to a 90-day pause and would reduce reciprocal tariffs by 115%, bringing the rate down to 10%. U.S. Trade Representative Jamieson Greer added that China would also remove countermeasures as part of the deal.
Effective Tariff Rates
Greer clarified that during the 90-day pause, the effective U.S. tariff on Chinese goods would be 30%, while China’s tariffs would be held at 10%. These changes are set to take effect by Wednesday.
Path to Ongoing Negotiations
China’s state-run news agency Xinhua reported that both countries plan to create a mechanism for continued dialogue, with future meetings to take place in either nation or a neutral location. Working-level consultations may also be held as needed.
Positive Momentum in Talks
Both sides described the Geneva talks as productive. Chinese Vice Premier He Lifeng said the discussions reached “important consensus,” and U.S. officials spoke of “substantial progress,” although they stopped short of calling it a finalized deal.
For more on this developing story, stay tuned to Que Onda Magazine.