United States and China Strike Remarkable Deal to Ease Trade Tensions

The United States and China have reached a significant agreement to temporarily reduce reciprocal tariffs, exceeding expectations as the two largest global economies aim to ease a protracted trade war. The U.S. will cut tariffs on Chinese imports to 30% from 145%, while China will lower duties on American goods to 10% from 125%, as announced on Monday. The measures will remain effective for 90 days.

This development led to a rise in the dollar value and an uplift in stock markets, alleviating concerns over a potential downturn caused by the previous tariff escalations. U.S. Treasury Secretary Scott Bessent emphasized the mutual interest in balanced trade and noted that neither country desires an embargo situation. The agreement, reached after face-to-face meetings in Geneva, showcases progress in narrowing economic differences between the nations.

Zhiwei Zhang, a Hong Kong-based economist, expressed optimism, highlighting the positive implications for both domestic and international economies. The deal is expected to ease fears related to global supply chain disruptions and marks a significant shift from the tariffs levied by the Trump administration. Analysts view this as a strategic move to prevent a global recession.

(With inputs from agencies.)