The United States and China have agreed to suspend the majority of tariffs on each other’s goods, signaling a significant easing of trade tensions between the two largest economies in the world.
As part of the new trade deal, “reciprocal” tariffs will be reduced from 125% to 10%. However, the U.S. will maintain its 20% tariffs on Chinese imports related to fentanyl, keeping the overall tariff level on Chinese goods at 30%.
This agreement follows a series of high-level trade negotiations held over the weekend in Switzerland.
“We had very productive talks, and I believe that the setting here in Lake Geneva brought a sense of calm and focus to the discussions,” said U.S. Treasury Secretary Scott Bessent during a news conference.
“We’ve reached a 90-day pause and agreed to significantly reduce tariff levels. Both sides will lower reciprocal tariffs by 115%,” Bessent added.
