The United States and China have reached a landmark agreement to dramatically reduce trade tariffs, marking a significant step towards easing tensions in their ongoing economic dispute.
In a joint statement following weekend talks in Geneva, the two economic superpowers agreed to reduce their previously imposed high-level tariffs to more moderate levels. US Treasury Secretary Scott Bessent described the negotiations as “productive” and “robust,” highlighting mutual respect between the delegations.
Prior to the agreement, the US had imposed duties of 145% on Chinese imports, while China retaliated with 125% tariffs on US goods. Under the new arrangement, these tariffs will be substantially reduced:
- US tariffs will be lowered from 145% to 30%
- Chinese tariffs will be reduced from 125% to 10%
The countries have also established a mechanism to continue discussions about economic and trade relations. China’s commerce ministry described the move as being “in the interest of the two countries and the common interest of the world.”
The agreement has already had immediate positive effects on financial markets. The US dollar rallied, and stock futures soared, with European and Asian markets also showing significant gains. The development comes as a relief to global economic observers who feared the escalating tariffs could trigger widespread economic downturn.
World Trade Organization Director Ngozi Okonjo-Iweala praised the talks as a “significant step forward,” emphasizing their importance not just for the US and China, but for vulnerable economies worldwide.
The negotiations took place at the residence of Switzerland’s UN ambassador in Geneva, following recent trade discussions between the US and Britain. While President Donald Trump had previously suggested an “80% Tariff on China,” White House Press Secretary Karoline Leavitt clarified that any tariff reductions would require mutual concessions.
This agreement represents a potential turning point in the trade tensions that have dominated international economic relations in recent months, offering hope for more stable global trade relations.