US and China Agree to Pause Trade War

In a significant development in the ongoing trade tensions between the United States and China, officials from both countries have announced a substantial agreement to roll back tariffs and establish a 90-day truce. This move marks a pivotal moment in the trade war that has been unsettling the global economy.

U.S. Trade Representative Jamieson Greer revealed that the United States has agreed to reduce its tariff rate on Chinese goods from an imposing 145% to 30%, a reduction of 115 percentage points. Correspondingly, China has committed to lowering its tariffs on U.S. goods by an equivalent amount, bringing the rate down to 10%.

Treasury Secretary Scott Bessent emphasized the mutual desire to avoid a complete decoupling of the two economies. He stated that the previous high tariff levels were tantamount to an embargo, an outcome neither side desired. Both nations have expressed their commitment to achieving more balanced trade relations.

The 90-day suspension period will serve as a window for further negotiations, allowing both sides to address longstanding differences and work towards a more comprehensive resolution. While this agreement has been met with optimism in global markets, experts caution that sustained progress will depend on the outcomes of these upcoming talks.