US-China Trade Relations: In a significant move to ease ongoing trade tensions, the world’s two largest economies — the United States and China — have agreed to slash tariffs on most goods for the next 90 days. Previously, tariffs of up to 125% were being imposed between the two nations. Under this new agreement, these tariffs will be reduced to 10%, marking a direct 115% cut.
However, the U.S. will maintain its 20% tariff on Chinese goods related to fentanyl, meaning the total tariff on those specific items will remain at 30%.
The breakthrough was achieved during a weekend meeting in Geneva, Switzerland, where U.S. Treasury Secretary Scott Bessent and Trade Representative Jamison Greyer led the American delegation. After the meeting, Bessent stated, “Our discussions were highly productive. Geneva’s calm and neutral environment helped guide the negotiations in a positive direction.”
He added that both countries will implement these reduced tariffs for 90 days, during which time further discussions on economic and trade policies will continue. The announcement has brought hope to global markets, with experts anticipating a cooling of tensions and a boost in investor confidence.
Analysts believe that this cooperative gesture signals a shift toward stability in US-China relations and could pave the way for broader reforms in global trade dynamics.
