The U.S. and China agreed to suspend most tariffs for 90 days following high-stakes weekend trade negotiations in Geneva, Switzerland over the weekend.
The details: The agreement will see both nations slash their tariffs from 125 percent to 10 percent during the three-month reprieve. A separate 20 percent tariff on China for its role in the fentanyl trade will remain in place.
- Treasury Secretary Scott Bessent said Sunday the talks led to “substantial progress,” and U.S. Trade Rep. Jamieson Greer added that the differences were “not as large as maybe thought.”
- China echoed the optimism, calling the pending joint statement “good news for the world.”
Markets react: U.S. stock futures surged, with the tech-heavy NASDAQ rising more than three percent. The dollar and bonds also jumped.
Trump reacts: President Trump struck an optimistic tone on Sunday, writing:
- “A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!”
What happens next? Talks will continue, led by Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng.
These terms go into effect on Wednesday.
Peace is in the air: Over the weekend, President Trump also announced that India and Pakistan agreed to a “full and immediate ceasefire” following negotiations mediated by the United States.