After intensive talks in Geneva, Switzerland, the US and China have agreed to lower tariffs for the next 90 days while they negotiate a permanent arrangement. This agreement marks a major de-escalation in the ongoing trade conflict between the two largest economies in the world. By May 14, China will cut its import duties on US goods from 125% to 10%, while the US plans to cut its tariffs on Chinese goods from 145% to 30%. Representatives for both countries made a joint statement announcing the deal, with both sides citing “substantial progress” from the two-day talks. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are representing the U.S. in the trade talks with China's Vice Premier He Lifeng. "We concluded that we have a shared interest. The consensus from both delegations is that neither side wanted a decoupling," explained Treasury Secretary Scott Bessent. This agreement represents a positive step forward for both countries, which have faced financial and economic setbacks due to the trade war. Following the announcement of the deal, global markets surged, with the benchmark index in Hong Kong rising by 3%, while the S&P 500 rose by 2.8% . One of the agreements reached during the negotiations was a crackdown on the trafficking of chemical ingredients used in fentanyl production, an issue that the US is committed to resolving. Before both countries reached a conclusion, President Donald Trump took to his social media platform, Truth Social, saying that they were making “GREAT PROGRESS.”
