WASHINGTON – In significant development that may redefine global trade dynamics, United States and China agreed to reduce tariffs on both countries’ products, in a significant de-escalation of trade tensions.
The confrontation between two major economies shook the world but following top-level negotiations in Geneva, UA Treasury Secretary Scott Bessent said that the two nations agreed to a 90-day suspension of further trade measures.
News reports carried by international media said tariffs currently in place will be reduced by over 100 percentage points, to 10pc to revive stability to global markets and restore almost $600 billion in two-way trade that has been stalled through mutual restrictions.
“Both sides defended national interests while acknowledging significance of returning balanced trade,” official said.
US President Trump’s new tariff agenda had elevated Chinese imports by an unprecedented 145%, fuelling trade tensions that had already spiked during his first term. Beijing retaliated with counter-punches, imposing 125pc tariffs and export restrictions on key rare earth elements vital to American industries.
The prolonged dispute strained global supply chains, contributed to inflation worries, and triggered job losses in sectors dependent on international trade. The latest breakthrough ushered in a wave of relief for global markets.
US stock futures surged, and the dollar rose against typical safe-haven currencies, as investors became hopeful the danger of a global recession can now recede.