The United States and China have reached an agreement to temporarily lower reciprocal tariffs for 90 days, offering a possible path forward in efforts to ease tensions in their ongoing trade dispute. The announcement came after high-level talks in Geneva, where officials from both countries met for face-to-face discussions.
Under the new terms, the U.S. will reduce tariffs on Chinese imports from 145% to 30%, while China will lower its levies on U.S. goods from 125% to 10%. The adjustments will take effect later this week and are intended to provide a window for continued negotiations.
The move sparked immediate responses from global financial markets. U.S. stock indexes surged in premarket trading, with the Dow Jones climbing 2.1%, the S&P 500 rising 2.8%, and the Nasdaq jumping 3.8%. European and Asian markets followed suit, buoyed by investor optimism that the trade confrontation between the world’s two largest economies could be cooling.
U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer led the American delegation. Speaking in Geneva, Bessent said the talks had been “very constructive” and emphasized that both sides had come to the table with a shared interest in reducing trade imbalances.
“We do not want to sever trade ties,” Bessent stated. “We want balanced trade and better conditions for both sides to continue engaging economically.”
Greer confirmed that, during the 90-day pause, both countries would maintain 10% reciprocal tariffs while working toward a broader agreement. “Our goal is to keep dialogue open and maintain momentum,” he said.
China’s Ministry of Commerce also welcomed the outcome, describing the agreement as a “step forward” and encouraging the U.S. to continue cooperation in a “mutually respectful” manner. Chinese Vice Premier He Lifeng called the discussions productive and said that both sides had reached “meaningful consensus.”
The joint statement included a pledge to create a framework for ongoing discussions. Meetings may alternate between the two countries or take place in a mutually agreed third nation. Working-level consultations are also expected to continue on technical and sector-specific matters.
The Geneva talks marked the first direct engagement between top-level U.S. and Chinese trade officials since President Donald Trump’s sweeping tariff actions in April, which dramatically escalated pressure on imports from China. Trump had claimed the measures were necessary to protect U.S. interests and address longstanding concerns over unfair trade practices.
In addition to trade matters, the U.S. delegation raised concerns about China’s role in the international flow of fentanyl and its precursors. While not formally part of the tariff agreement, Greer indicated that separate discussions on drug enforcement cooperation were “moving in a positive direction.”
Bessent, speaking later on MSNBC, said the U.S. was not aiming for a full economic split with China. “This is not about cutting ties across the board,” he said. “It’s about making sure that we can secure critical supply chains — in areas like steel, semiconductors, and medicines — without depending entirely on external sources.”
In China, economists reacted positively to the announcement. Tianchen Xu of the Economist Intelligence Unit said the decision would offer short-term relief to small exporters struggling with order cancellations. “This will help stabilize production and protect jobs,” he said.
Meanwhile, U.S. importers are expected to benefit from lower costs, easing some inflationary pressure and offering breathing room for retailers heading into the summer.
Shipping giant Maersk described the agreement as “a welcome development” and expressed hope that the two sides would build on this momentum to reach a lasting resolution. Shares in Maersk, LVMH, and other companies with exposure to China rose sharply on Monday following the announcement.
Despite the encouraging tone, analysts cautioned that unresolved issues remain and that any long-term deal will require further effort. The current agreement, while limited in scope, may offer a foundation for broader cooperation if both sides choose to build on it.
The next round of talks is expected within the coming weeks.
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