By Peter Omopo
The United States and China have reached a landmark agreement to reduce high tariffs imposed during their ongoing trade war, signaling a major step toward easing global economic tensions.
Announced on Monday, both nations confirmed they would scale back tit-for-tat tariffs for a 90-day period while continuing negotiations. The decision comes after high-level talks between US Treasury Secretary Scott Bessent, Chinese Vice Premier He Lifeng, and international trade representative Li Chenggang in Geneva.
The talks, described by Bessent as “productive” and “robust,” marked the first formal engagement between the world’s two largest economies since US President Donald Trump launched a sweeping global tariff initiative last month.
Under the new arrangement, the United States will reduce tariffs on Chinese imports from 145 percent to 30 percent. In response, China will lower its retaliatory duties on US goods from 125 percent to 10 percent. The agreement was reached during closed-door discussions at the Swiss ambassador’s residence in Geneva.
China’s Ministry of Commerce welcomed the outcome, describing it as “substantial progress” and calling the agreement a move in the mutual interest of both countries and the broader global economy. Beijing urged Washington to continue working to reverse what it termed the “unilateral tariff hikes.”
Global financial markets responded positively to the news, with stock indices and the US dollar rebounding after weeks of instability triggered by the trade dispute.
US Trade Representative Jamieson Greer clarified that some levies — particularly those linked to Chinese exports of chemicals used in fentanyl production — would remain in place. However, both sides agreed to cooperate further on combating the illicit drug trade, signaling a broader diplomatic thaw.
The joint statement concluded with a pledge to establish a formal mechanism for ongoing dialogue on trade and economic issues.
