US-China Trade Tariff Truce: Stock Markets Rebound as Economic Giants Seek Resolution
US and China have agreed to reduce tariffs significantly, pausing new ones for 90 days to negotiate trade disputes. The move has resulted in a positive response from global stock markets. Both nations aim to avoid a trade embargo and work towards more balanced trade relations.
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In a significant development, the US and China have agreed to roll back a substantial portion of their tariffs, initiating a 90-day pause to resolve ongoing trade disputes. This decision comes as part of an effort to prevent further disruption to the global economy, which is still reeling from recent economic tensions.
The announcement, made by US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent during a news conference in Geneva, outlined the tariff reductions: the US and China will lower tariffs on each other's goods to 30% and 10%, respectively. This move represents a substantial decrease from previous rates, signaling a commitment to overcoming trade disagreements.
The news has been welcomed by global markets, with US futures seeing a more than 2% rise, while Hong Kong's Hang Seng index jumped nearly 3%. European indices in Germany and France also saw modest gains. Both nations have emphasized their desire to avoid a trade embargo and pursue balanced trade relations, which appears to have restored a degree of confidence among investors.
(With inputs from agencies.)
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