US and China Agree to Slash Tariffs in 90-Day Trade Truce
The United States and China have reached a breakthrough agreement in Geneva to temporarily slash reciprocal tariffs, aiming to ease global trade tensions. According to a joint statement, the move initiates a 90-day trade truce, providing a window for the world's two largest economies to negotiate and resolve their ongoing trade disputes. This development has been welcomed as a positive step towards de-escalating economic friction and reducing market fears globally.
Unpacked:
The US imposed tariffs of up to 145% on Chinese imports, and China retaliated with tariffs of 125% on American goods amid an escalating trade war. Both sides hardened their positions over issues like intellectual property, market access, and trade imbalances, which significantly disrupted global trade and froze US-China commerce.
During the 90-day period, both countries aim to negotiate a more comprehensive agreement addressing key disputes. The truce is expected to allow for resumed trade flows, reduction in market uncertainty, and talks to resolve issues such as tariffs, non-tariff barriers, and broader economic relations.
The agreement has been broadly welcomed by global markets and stakeholders, who view it as a positive step toward de-escalation. It has helped reduce fears of a prolonged trade war, with hopes that continued negotiations will lead to a more stable and predictable global trading environment.
Despite the truce, major issues remain unresolved, including persistent disagreements over intellectual property rights, forced technology transfers, market access, and the long-term structure of tariffs. Both sides acknowledge that further negotiations will be necessary to address these complex topics.