US-China Agree to Temporary Tariff Reductions in Geneva Trade Talks

In a significant development aimed at easing ongoing trade tensions, the United States and China have mutually agreed to temporarily lower tariffs on each other’s goods for 90 days. The agreement, reached during two-day high-level trade talks in Geneva, marks the first round of direct engagement between senior economic officials from both nations since President Donald Trump began his second term.

According to a joint statement released in Geneva, China has proposed to cut tariffs on U.S. goods from a staggering 125% to 10%, while the United States plans to reduce tariffs on Chinese imports from 145% to 30%. This step is being viewed as a move toward de-escalating the trade conflict that intensified after Trump’s reciprocal tariff announcement on April 2.

“We had a very robust and productive discussion on steps forward on fentanyl,” said U.S. Treasury Secretary Scott Bessent, highlighting one of the key topics of cooperation. “We agree that neither side wants to decouple,” he added.

The joint statement also revealed plans to establish a formal mechanism for continued dialogue on trade and economic relations between the two countries.

The positive outcome of the talks has already impacted global markets. Asian stock exchanges rallied, with Hong Kong’s index climbing 3%, Shanghai gaining nearly 1%, and stock markets in Japan and Taiwan also recording strong performances.

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While the White House initially termed the arrangement a “trade deal,” details regarding long-term strategies beyond the 90-day tariff relief remain uncertain. China continues to press for the complete removal of all tariffs imposed this year, a stance that conflicts with Washington's ongoing efforts to address its trade imbalance with Beijing.

Despite lingering differences, both sides have acknowledged making "substantial progress," signaling potential for further cooperation in the near future.