The United States and China issued a joint statement on Monday confirming a 90-day pause in their escalating trade war, with both countries agreeing to cut reciprocal tariffs and committing to pursue a long-term, mutually beneficial economic relationship.
The agreement followed two days of negotiations in Geneva, Switzerland, where representatives from both sides met to lay the groundwork for a potential comprehensive trade deal. The talks aimed to de-escalate tensions triggered by President Donald Trump’s “Liberation Day” tariff measures announced in April, which sparked market volatility and raised fears of a U.S. recession.
U.S. Treasury Secretary Scott Bessent announced the breakthrough at a press conference in Geneva, stating, “We have reached an agreement on a 90-day pause and will significantly reduce tariff levels. Both countries will reduce reciprocal tariffs from 115% to 10%.”
U.S. Trade Representative Jamieson Greer clarified that both nations would maintain a 10% reciprocal tariff rate during the truce. “The Chinese will bring their tariffs down to 10% and remove existing countermeasures,” he said. Greer also noted that despite the reductions, the effective tariff on Chinese goods entering the U.S. will stand at 30% for the duration of the pause.
The joint statement said the changes would take effect by Wednesday.
Chinese Vice Premier He Lifeng described the outcome as a sign of “substantial progress and important consensus” between the two powers. While Greer referred to the outcome as a “deal,” Bessent stopped short of that, framing it as a meaningful step toward resolution.
The 90-day truce provides a crucial window for both sides to continue negotiations and work toward a broader resolution to the trade conflict
