The United States and China have agreed to significantly reduce their retaliatory tariffs for 90 days, marking a major step toward easing the trade war that has rattled global markets. Following high-level talks in Geneva, both countries announced they would cut tariffs to double-digit rates—30% for US tariffs on Chinese goods and 10% for Chinese tariffs on US imports.

US Treasury Secretary Scott Bessent described the discussions with Chinese Vice Premier He Lifeng and trade representative Li Chenggang as “productive” and “robust,” adding, “Both sides showed a great respect.” China praised the “substantial progress” and said the move aligns with global interests.

While the US maintains an additional 20% tariff on certain Chinese chemicals linked to fentanyl production, both nations agreed to cooperate on the fentanyl issue. “Both the Chinese and United States agreed to work constructively together on fentanyl and there is a positive path forward there as well,” said US Trade Representative Jamieson Greer.

A joint mechanism will be established to continue talks, which Bessent said could prevent future escalation: “The nature of what has happened since April 2 could have been avoided if we had had this kind of mechanism in place.”

Chinese experts celebrated the agreement, with economist Zhiwei Zhang calling it a “success” for Beijing. However, analysts warned that “uncertainties” remain, and the tariff war could resume if no further progress is made within 90 days.

The WTO’s Director-General, Ngozi Okonjo-Iweala, hailed the outcome as a “significant step forward,” noting its importance for the global economy, particularly vulnerable nations.