U.S.-China Trade Truce: A Temporary Halt in Tariffs

The United States and China have reached a temporary agreement to reduce tariffs, marking a significant step towards ending their ongoing trade war. With tariffs slashed to a baseline rate of 10%, financial markets showed optimism, potentially averting economic decline. Both nations show commitment to balanced trade.

The United States and China have brokered a temporary deal to reduce reciprocal tariffs, calming tensions in a lengthy trade war that has caused global economic worries. U.S. Treasury Secretary Scott Bessent announced a 90-day pause in tariff escalations, with reductions to a 10% baseline.

The discussions in Geneva were the first high-level talks since President Trump's return to office, with both sides eager to avoid decoupling. The reduced tariffs are seen as a positive step towards economic stability, alleviating fears of recession and supply chain disruptions.

Markets responded positively to the news, with optimism growing that this truce might restore confidence and prevent further economic downturn. U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng called the discussions constructive, moving towards narrowing the U.S. trade deficit.

(With inputs from agencies.)