In a critical step towards promoting trade voltage, the US and China have agreed to significantly reduce tariffs over the next 90 days. This development is a considerable step towards eliminating the trade war that has strained global markets and hampered supply chains.
During negotiations in Geneva, the US promised to reduce tariffs on Chinese goods from 145% to 30%, while China agreed to reduce tariffs on US imports from 125% to 10%. This mutual concession aims to promote a more balanced trade relationship between the two biggest economies of the world.
The announcement immediately had a positive effect on global financial markets. The S&P 500’s future rose 2.8%, the US dollar rose 0.7%, and the gold price fell 2.3%. US Finance Minister Scott Becent has rejected the concept of economic decoupling, highlighting the common goal of achieving more balanced trade. The agreement follows the rise in economic pressure and appeals from large American economists warning of possible product shortages due to the ongoing tariff dispute.
The agreement is temporary, but represents a key step to resolving tensions that have been tightening since the beginning of April when the Trump administration imposed Chinese goods, leading to mutual action by Beijing. The Geneva speech was held by Bescent and US trade representative Jamieson Greer, where the Chinese vice president took his life.
The 90-day tariff reduction will make the two countries an important window into a more lasting solution to differences in transactions, which will stabilize the global market and restore trust between investors and businesses worldwide.
