The US and China have agreed to a sweeping rollback of punitive tariffs for an initial 90-day period, signaling a rare moment of relief in their protracted trade conflict and raising hopes for longer-term economic stability, according to a joint statement released by the US on Monday.
The deal, reached following intense weekend negotiations in Geneva, will see both countries significantly reduce duties on each other’s goods, with the US lowering its tariffs on Chinese products from 145% to 30% and China decreasing its own from 125% to 10% by May 14.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer made the joint statement public during a press briefing in Geneva.
Though only temporary, the agreement is the most significant step toward easing trade tensions in years, providing a lifeline to global markets rattled by months of uncertainty.
In the joint statement, both governments acknowledged the importance of “a sustainable, long-term, and mutually beneficial” trade relationship.
To that end, the two sides will launch a new dialogue mechanism to maintain momentum, led by Chinese Vice Premier He Lifeng, Bessent, and Greer.
Future talks may alternate between “China, the United States, or a third country upon agreement of the parties” venues, with lower-level technical discussions convened as needed.
The surprise rollback follows years of tit-for-tat tariffs that disrupted global supply chains and fueled economic anxiety.
The talks, which began Saturday in the Swiss city, came after US President Donald Trump raised tariffs on Chinese imports to 145%, prompting Beijing to retaliate with 125% duties on American goods.