Historic Trade Truce: U.S. and China Slash Tariffs to Rekindle Economic Ties
The U.S. and China have reached a temporary agreement to reduce tariffs significantly, aiming to ease the trade tensions that have affected global markets. The agreement, effective for 90 days, marks a step toward stabilizing economies by reducing U.S. tariffs on Chinese imports to 30% and China's to 10% on U.S. imports.
The United States and China have reached a landmark agreement to temporarily reduce reciprocal tariffs, aiming to defuse a trade war that has disrupted global markets and fueled recession fears. The U.S. will decrease tariffs on Chinese imports to 30% from 145%, while China will lower duties on U.S. imports to 10% from 125%. These measures, effective for 90 days, have buoyed financial markets and eased concerns of a looming economic downturn.
U.S. Treasury Secretary Scott Bessent, after negotiations in Geneva, emphasized the mutual interest in balanced trade and lauded the progress made in narrowing differences with China. Talks between U.S. and Chinese officials highlighted both nations' intent to avoid further economic decoupling, with the dispute having previously halted nearly $600 billion in bilateral trade and caused significant supply chain disruptions.
The deal excludes sector-specific tariffs but signals a strategic shift in U.S. trade policy, particularly in sectors like medicines, semiconductors, and steel, where supply chain vulnerabilities were noted. Analysts and industry leaders view this development positively, as it is expected to mitigate fears about global supply chain disruptions and economic stagnation.
(With inputs from agencies.)
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