US and China Agree to 90-Day Tariff Reduction to Ease Trade Tensions

The United States and China have mutually agreed to a 90-day reduction on tariffs, marking a significant step toward de-escalating the trade war between the world’s two largest economies. The agreement, reached during talks in Geneva, will see the US lowering duties on Chinese imports from 145% to 30%, while China will reduce tariffs on US goods from 125% to 10%. The deal does not affect the removal of the de minimis exception, which closed a tariff loophole used by companies like Temu and Shein to import low-value goods without paying duties. Treasury Secretary Scott Bessent stated that both nations are committed to achieving more balanced trade and avoiding economic decoupling. The 90-day pause is intended to allow time for further negotiations on a final trade agreement.