On Monday, the United States and China announced a 90-day pause on most of the retaliatory tariffs that both nations had implemented since early April. This comes after President Trump initiated a broad global tariff strategy, escalating tensions in the ongoing trade war with China.
The two largest economies issued a joint statement, indicating their commitment to work toward a sustainable trade agreement and to reduce tariffs.
Following the announcement, stock market futures reacted positively.
As part of the agreement, the US will reduce its tariff rate on Chinese imports from 145% to 30%, while China will lower the tariff rate on US goods from 125% to 10%.
Additionally, China has promised to suspend or eliminate non-tariff measures imposed on the US since early last month, as detailed in a fact sheet released by the White House.
The agreement was announced by US Trade Representative Jamieson Greer and Treasury Secretary Scott Bescent during a press conference in Geneva. This announcement follows the first meetings between officials from both countries since the trade conflict began.
Bescent stated, “The consensus from both delegations this weekend shows that neither side desires decoupling.” He emphasized that the high tariffs were akin to an embargo, which both sides want to avoid, expressing a desire for continued trade.
He further commented on the importance of achieving a more balanced trade, noting that both parties seem committed to this goal.
According to the joint statement, Greer and Bescent will represent the US in upcoming trade negotiations over the next three months, while China will be represented by its Deputy Prime Minister Lifeng.
The discussions may take place alternately in either country or in third-party nations, as agreed upon by both sides. If needed, additional consultations on relevant economic and trade matters might also be scheduled.
