Topline
The U.S. and China on Monday announced they would significantly cut back tariffs placed on each other's goods for at least 90 days as both sides plan to continue negotiations on a trade deal, triggering a major surge in U.S. stock futures and global markets.
US Treasury Secretary Scott Bessent looks at a note during a news conference in Geneva.
The U.S. has agreed to cut President Donald Trump’s “reciprocal tariffs” on China from 125% to 10%, while China has agreed to do the same.
A separate 20% tariff on Chinese goods that the president imposed over what he said was China’s alleged role in fanning the fentanyl crisis in the U.S. will remain in place, which means the total levy on Chinese goods will drop from 145% to 30%.
While announcing the tariff pause in a press conference in Geneva, where the two sides were holding trade negotiations, Treasury Secretary Scott Bessent said both sides agreed that “we have a shared interest” and “neither side wanted a decoupling” of trade.
Bessent said the very high tariffs imposed by both sides was equivalent to a trade embargo and “neither side wants that” and rather the U.S. wants “more balanced trade.”
U.S. Trade Representative Jamieson Greer noted that the rollback does not cover “any sector-specific tariffs imposed globally...So some Chinese goods would still face a higher levy.”
This is a developing story.