MWE Correspondent
The United States and China have agreed to a temporary easing of trade tensions, slashing tariffs for a 90-day period as both sides seek a broader resolution to their economic standoff.
As part of the deal, the U.S. has reduced its tariffs on Chinese imports from 145% to 30%, while China has cut tariffs on American goods from 125% to 10%. The agreement was reached during negotiations held in Geneva, Switzerland, attended by U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng.
While this truce is temporary, it marks a crucial turning point following years of escalating tariffs and economic retaliation between the world’s two largest economies.
Financial markets responded swiftly. Following the announcement, major stock indices in Asia and the U.S. climbed, with analysts from Bloomberg and Reuters suggesting the pause offers a “short-term sigh of relief” to investors and manufacturers who have borne the brunt of rising costs and uncertainty.
The agreement, however, is far from comprehensive. Key points of contention—such as intellectual property rights, forced technology transfers, and market access restrictions—remain unresolved.
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A senior Chinese Commerce Ministry official said that any permanent deal “must align with China’s national interests,” a sentiment echoed by U.S. negotiators, who stressed the need for fairness and balance in bilateral trade.
The ongoing trade war, which began in 2018, has had far-reaching implications on supply chains, corporate earnings, and global inflation. Although the current agreement is limited in scope, diplomats and trade experts hope it may lay the groundwork for a longer-term solution.
Talks between the two nations are expected to continue over the coming weeks. Whether the truce can evolve into a lasting deal remains to be seen, but for now, it signals a rare moment of de-escalation in an otherwise tense geopolitical landscape.
