In a major move to ease trade tensions, the United States and China have agreed to a 90-day pause on most retaliatory tariffs. This agreement comes after months of rising tension and steep tariffs imposed by both nations.
The decision was announced on Monday, following a weekend of trade discussions between U.S. and Chinese officials in Geneva. The goal: to work toward a more balanced and fair trade deal.
What’s in the Agreement?
According to the joint statement released overnight, both countries have agreed to lower their tariffs during the 90-day pause:
- The U.S. will cut tariffs on Chinese goods from 145% down to 30%
- China will reduce tariffs on U.S. goods from 125% down to 10%
In addition, China agreed to suspend or remove certain non-tariff countermeasures it had taken since early April.
Who’s Leading the Talks?
U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent will represent the U.S. in further trade talks. He Lifeng, Vice Premier of China’s State Council, will lead for the Chinese side.
These discussions may take place in either country or even in a neutral third country, according to the agreement.
“Neither side wants a decoupling,” said Bessent. “What had happened was close to an embargo—and neither side wants that.”
A Positive Signal for Global Markets
The news caused stock market futures to jump, reflecting relief from investors who were worried about the economic impact of the trade war.
On Monday afternoon, President Donald Trump called the agreement a “total reset” in U.S.–China relations. He clarified that the deal does not cover existing tariffs on cars, steel, aluminum, or any future tariffs on pharmaceuticals.
“We’re not looking to hurt China. China was being hurt very badly,” Trump said. “We want more balanced trade.”
Talks to Continue Over Next 90 Days
The White House says this 90-day period is being used to negotiate further deals, not only with China but with other trading partners as well. In fact, a new trade deal with the U.K. was announced last Thursday.
Trump also shared that he would speak with Chinese President Xi Jinping later this week to further strengthen relations.
Apple’s U.S. Expansion Also in Focus
After the trade news broke, Trump revealed he had spoken with Apple CEO Tim Cook, who said Apple plans to open more manufacturing plants in the U.S. This is seen as a positive signal for American jobs and investment.