U.S. and China Reach Trade Truce: A New Dawn for Global Markets?
The U.S. and China have agreed to a temporary tariff reduction as part of efforts to resolve a trade war disrupting global markets. Negotiations in Geneva led to a 90-day pause and a significant tariff decrease. The move raises hopes of averting a global recession.
In a significant development, the United States and China have reached a preliminary agreement to temporarily reduce reciprocal tariffs, marking a potential turning point in the prolonged trade war that has unsettled global economic stability.
U.S. Treasury Secretary Scott Bessent announced the mutually beneficial arrangement after discussions with Chinese officials in Geneva, where both parties agreed to a 90-day pause on tariff measures, significantly reducing tariffs by over 100 percentage points to 10%.
This diplomatic breakthrough follows face-to-face meetings, the first since U.S. President Donald Trump resumed office, leading to a gradual de-escalation of tariffs that had reached 145% on U.S. imports. Global markets reacted positively, with stock futures rising on Wall Street as hopes surge for avoiding a potential global recession.
(With inputs from agencies.)
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