In a significant step toward easing trade tensions, the United States and China have reached an agreement to roll back retaliatory tariffs, following a high-level negotiation in Geneva, Switzerland.
According to a joint statement, both nations have agreed to reduce tariffs they had imposed on each other for an initial period of 90 days, starting May 14. The United States will lower its tariffs from 145% to 30%, while China will reduce its own from 125% to 10%.
As part of the agreement, a bilateral mechanism will be established to facilitate continued dialogue on economic and trade relations. This group will be co-led by Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer.
Global markets reacted positively to the news. In the US, the Dow index was set to open 2.1% higher, while S&P 500 and Nasdaq futures rose by 2.7% and 3.6%, respectively. In Europe, Germany's DAX gained 1.2% and France's CAC 40 climbed by 1%.
This development marks a significant thaw in trade relations between the world’s two largest economies, with financial markets and analysts viewing it as a positive step toward long-term economic cooperation.
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