The US-China trade deal marks a breakthrough in the ongoing trade war, as both countries agreed to significantly reduce retaliatory tariffs for 90 days. Announced on Monday, the agreement followed talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, along with trade representative Li Chenggang, in Geneva

Both countries pledged to slash their previously imposed triple-digit tariffs. President Donald Trump had raised US tariffs on Chinese imports to 145%, while Beijing retaliated with 125% duties. After the talks, both sides agreed to cut tariffs by 115 percentage points—bringing US tariffs down to 30% and Chinese tariffs to 10%.

Bessent described the discussions as “productive” and “robust,” emphasizing mutual respect throughout the negotiations. In a joint statement, the US and China also committed to establishing a mechanism to sustain dialogue on trade and economic issues.

The Chinese commerce ministry hailed the progress, stating it serves not only national interests but also benefits the global economy. It urged Washington to abandon unilateral tariff hikes and continue collaborative negotiations.

The new US-China trade deal calmed financial markets worldwide. The dollar rebounded strongly, while US stock futures surged. European and Asian markets also reacted positively.

WTO Director-General Ngozi Okonjo-Iweala welcomed the breakthrough, calling it a “significant step forward” and a positive sign for the global economy, especially for vulnerable nations.

President Trump, who previously suggested even harsher tariffs, appeared open to reductions, provided China reciprocates. White House Press Secretary Karoline Leavitt confirmed that the United States would not ease tariffs unilaterally.

The US-China trade deal follows a recent US-UK agreement, reinforcing Washington’s willingness to pursue targeted trade reliefs while maintaining leverage through baseline tariffs on other nations.