Mathew Amaechi
In a move to ease global economic tensions, the United States and China announced on Monday a sweeping agreement to slash punitive tariffs for 90 days, signaling a potential thaw in a bitter trade war that has rattled markets and fueled fears of a worldwide recession. The breakthrough follows high-stakes weekend talks in Geneva, where officials from both nations committed to reducing triple-digit tariffs and establishing a framework for ongoing negotiations.
The agreement, finalized at a discreet villa owned by Switzerland’s UN ambassador, marks the first direct dialogue since President Donald Trump escalated tariffs last month. Under the deal, the U.S. will lower its tariffs on Chinese imports from 145% to 30%, while China will cut its retaliatory duties from 125% to 10%. U.S. Treasury Secretary Scott Bessent hailed the “productive” and “robust” discussions, emphasizing mutual respect between the sides. “This mechanism could have prevented the chaos we’ve seen since April,” he told reporters, referencing Trump’s global tariff blitz that sparked Beijing’s fierce backlash.A 20% U.S. levy targeting Chinese exports of fentanyl precursors remains intact, though both nations agreed to collaborate on curbing the synthetic opioid crisis. U.S.
Trade Representative Jamieson Greer hinted at future progress, stating, “There’s a positive path forward on this critical issue.”News of the truce ignited immediate optimism: global stocks and the dollar surged, reversing weeks of volatility triggered by trade war anxieties.
China’s Commerce Ministry praised the “substantial progress,” urging Washington to abandon “unilateral tariff rises” while pledging to hold “rolling consultations” in the coming months.Economists noted Beijing’s strategic win. “China secured major tariff reductions without conceding ground,” said Zhiwei Zhang of Pinpoint Asset Management. Wang Wen of Renmin University cautioned, however, that “uncertainties loom,” warning of a potential relapse if talks stall. The 90-day window, he stressed, offers a fragile “pause button,” not a resolution.
The détente follows Trump’s recent trade pact with the UK and drew praise from WTO Director-General Ngozi Okonjo-Iweala, who called it a “significant step” for global stability, particularly for vulnerable economies. Yet challenges persist: inflation risks, supply chain disruptions, and lingering distrust threaten to undermine the fragile truce. As negotiations resume, the world watches to see if economic pragmatism can prevail over geopolitical rivalry.