U.S. and China Agree on 90-Day Tariff Reduction Deal

The United States and China have agreed to temporarily reduce mutual tariffs for 90 days following negotiations held in Geneva, Switzerland. This short-term deal aims to ease growing trade tensions between the two economic powers and reduce pressure on the global economy.

Under the agreement, the U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will cut tariffs on U.S. goods from 125% to 10%. The measures officially took effect on May 14.

U.S. Treasury Secretary Scott Bessent stated, "We’ve reached a consensus on a 90-day pause and a significant reduction in tariff levels. Both sides agree that decoupling is not the desired path."

Following the announcement, global markets reacted positively. The U.S. Dollar Index rose, and stock markets in both Europe and Asia saw a general rebound. Germany’s DAX index reached its highest point in over a year.

The agreement also includes plans to establish a mechanism for continued economic cooperation and dialogue. Experts suggest this temporary deal could pave the way for a long-term trade agreement, though the direction of future negotiations after the 90-day period remains crucial.