In a significant breakthrough poised to reshape global trade, the United States and China have agreed to slash tariffs on each other’s goods, marking a major de-escalation in their long-standing trade conflict.
The announcement came after high-stakes negotiations in Geneva, where US Treasury Secretary Scott Bessent revealed that both nations agreed to a 90-day freeze on further trade actions. According to international reports, existing tariffs will be reduced by over 100 percentage points—bringing them down to just 10%—in an effort to stabilize global markets and revive nearly $600 billion in bilateral trade stalled by years of tit-for-tat measures.
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An official noted that both sides safeguarded their national interests while recognizing the need for balanced trade restoration.
Previously, President Trump had hiked tariffs on Chinese imports to a record 145%, triggering retaliation from Beijing with 125% duties on American goods and restrictions on rare earth exports vital to US industries. The prolonged standoff disrupted supply chains, fueled inflation concerns, and led to job losses in trade-dependent sectors.
The new agreement sparked a global market rally. US stock futures surged, and the dollar strengthened against safe-haven currencies, signaling investor relief and hope that global recession risks may now diminish.
