In a significant development aimed at easing global economic tensions, China and the United States have agreed to a 90-day suspension of their escalating trade war. As part of the temporary truce, both countries will cut reciprocal tariffs by 115%, signaling a potential shift toward de-escalation.
The agreement was reached following high-level negotiations in Geneva. U.S. Treasury Secretary Scott Bessent, speaking to the media after the talks, described the discussions as “respectful and constructive,” highlighting a rare moment of cooperation between the two economic giants.The trade war, originally triggered during the Trump administration, has strained international markets and raised fears of long-term economic disruption. Observers now hope the pause will create room for a more lasting resolution.
A spokesperson for China’s Ministry of Commerce described the agreement as a positive step, saying it reflects the hopes of both nations’ producers and consumers, and supports not only bilateral interests but the broader global economy.“This development meets the expectations of industries and consumers on both sides and serves the mutual interests of our countries as well as the shared interest of the international community,” the spokesperson said.They went on to express hope that the United States would use the momentum from the talks to shift away from unilateral tariff actions. “We encourage the U.S. to continue moving forward in alignment with China, fully correct the mistaken approach of unilateral tariff hikes, and work to deepen mutually beneficial cooperation.”