US and China Reach 90-Day Trade Truce with Tariff Cuts

GENEVA (AP) — US and Chinese officials announced a significant agreement on Monday to ease tensions in their ongoing trade conflict. After two days of discussions, the two nations reached a deal to roll back tariffs and establish a 90-day truce for further negotiations.

US Trade Representative Jamieson Greer revealed that the US plans to reduce its hefty 145% tariff on Chinese imports by 115 percentage points to 30%. In turn, China will lower its tariff rate on US goods from 125% to 10%. These changes came during a news conference where Treasury Secretary Scott Bessent emphasized the importance of avoiding a complete trade blockade.

“Neither side wants a decoupling,” Bessent stated, referring to the recent high tariffs which he compared to an embargo. “We want balanced trade, and I think both sides are committed to achieving that.”

The Chinese Commerce Ministry called the agreement an essential step toward resolving trade disputes. A ministry statement welcomed the initiative, stating it aligns with the hopes of producers and consumers in both countries.

“We hope the US will stop unilateral tariff hikes and work with China to ensure stable economic relations,” the statement added. The ministry expressed optimism for cooperation in the realm of global trade.

Markets reacted positively to the agreement, with US futures rising over 2% and oil prices increasing significantly. Jens Eskelund, president of the European Union Chamber of Commerce in China, urged cautious optimism, noting that the truce only lasts for 90 days.

“Businesses need predictability to maintain normal operations,” Eskelund warned. “We hope both sides will continue dialogue to avoid disruption to global trade.”

Trump’s administration had escalated tariffs on Chinese imports during recent months, pushing rates to unprecedented levels. The upcoming 90-day period will be key in determining whether further agreements can be reached.