US-China Trade Deal: Agreement to Reduce Tariffs for 90 Days

The United States and China have reached a significant agreement to reduce tariffs for a 90-day period, aiming to ease trade tensions. US Treasury Secretary Scott Bessent announced that the US will lower tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on US imports from 125% to 10%. The negotiations, held in Geneva, were described as "robust" and founded on mutual respect. A joint statement from the White House emphasized the importance of continued dialogue and acknowledged the global economic significance of the US-China trade relationship.

Impact on Global Financial Markets

The news has positively impacted global financial markets, with major indices in the US, Asia, and Europe experiencing substantial gains, and the US dollar strengthening against major currencies. This temporary tariff reduction follows heightened market volatility stemming from previous US tariff announcements. Further developments are expected as the 90-day pause proceeds.

Future Negotiations

Both countries have agreed to continue discussions during the 90-day period to address remaining trade issues and work towards a long-term resolution. The outcome of these negotiations will be closely monitored by global markets and policymakers.