The US and China agreed on Monday to cut reciprocal tariffs and implement a 90-day pause on further trade measures, marking a key step toward ending a protracted trade war that has disrupted global markets and stalled nearly $600 billion in bilateral trade. Following talks in Geneva, US Treasury Secretary Scott Bessent confirmed tariffs would be reduced by more than 100 percentage points to 10 per cent, with both sides expressing commitment to balanced trade. The meetings marked the first high-level engagement since President Donald Trump's return to office, which reignited a global tariff offensive, particularly targeting China. Under Trump, US tariffs on Chinese goods had soared to 145 per cent, prompting China to retaliate with rare earth export restrictions and tariffs of up to 125 per cent on US imports. The dispute strained supply chains, threatened jobs, and heightened fears of stagflation. In a joint statement, both governments recognised the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship, and pledged to continue dialogue to address mutual concerns. Vice Premier He Lifeng will represent China in the new bilateral mechanism, alongside Bessent and US Trade Representative Jamieson Greer, with talks to alternate between both countries or a third-party venue. The United States will (i) modify the application of the additional ad valorem rate of duty on articles of China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10 percent on those articles pursuant to the terms of said Order; and (ii) removing the modified additional ad valorem rates of duty on those articles imposed by Executive Order 14259 of April 8, 2025 and Executive Order 14266 of April 9, 2025. China will (i) modify accordingly the application of the additional ad valorem rate of duty on articles of the United States set forth in Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining additional ad valorem rate of 10 percent on those articles, and removing the modified additional ad valorem rates of duty on those articles imposed by Announcement of the Customs Tariff Commission of the State Council No. 5 of 2025 and Announcement of the Customs Tariff Commission of the State Council No. 6 of 2025; and (ii) adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025. Markets responded positively, with Wall Street futures rising and the dollar strengthening on renewed hopes of avoiding a global recession. Following the agreement to ease tariffs, both parties agreed to establish a framework for continued dialogue on economic and trade relations. China's delegation will be led by Vice Premier He Lifeng, while the US will be represented by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. Talks are expected to alternate between China, the US, or a mutually agreed third country. Working-level consultations may also be held as needed to address specific economic and trade issues, the joint statement added. Attribution: Amwal Al Ghad English, Reuters Subediting: Y.Yasser
