US-China Agree to Slash Tariffs in 90-Day Deal, Boosting Global Markets

The United States and China have reached a breakthrough agreement to significantly reduce tariffs, aiming to ease tensions from a prolonged trade war that has threatened global economic stability.

Speaking in Geneva after talks with Chinese officials, US Treasury Secretary Scott Bessent announced a 90-day pause on new trade measures and a rollback of reciprocal tariffs to a baseline of 10%—a dramatic cut of over 100 percentage points.

“This is about mutual interest and balanced trade. Neither country wants a decoupling,” Bessent said. He described the previous high tariffs as tantamount to an economic embargo, which both nations are now moving to reverse.

The announcement sent the US dollar and global markets upward, calming recession fears that spiked after President Donald Trump escalated tariff measures earlier this year.

Bessent and US Trade Representative Jamieson Greer both highlighted a shared commitment to renewed cooperation. The discussions were the first in-person engagement between top US and Chinese economic officials since Trump’s return to the White House.

During Trump’s renewed term, tariffs on Chinese goods surged to 145%, prompting China to retaliate with 125% duties on US imports and export controls on critical materials like rare earths.

The trade war had nearly frozen $600 billion in commerce, disrupted supply chains, and threatened jobs. Investors responded positively to the deal, with Wall Street futures rising and economists hailing the unexpected depth of the agreement.

China’s Vice Premier He Lifeng confirmed “substantial progress” and both sides agreed to open a new dialogue platform to further improve economic ties.

Trump, commenting before talks ended, described the breakthrough as a “total reset… in a friendly, constructive manner.”