US and China to roll back tariffs in a major breakthrough

The world’s two largest economies agree to lower tariffs for a 90-day period, buoying global markets 

On Monday, the United States and China reached an agreement to significantly reduce tariffs on each other's products for an initial period of 90 days, marking an unexpected breakthrough that has positively impacted global markets. The announcement, made through a joint statement, followed extensive trade negotiations held over the weekend in Geneva, Switzerland, where officials from the two largest economies in the world reported 'substantial progress.

' By May 14, the United States will temporarily decrease its tariffs on Chinese goods from 145% to 30%, while China will lower its tariffs on American imports from 125% to 10%, as stated in the joint declaration. Furthermore, both parties have agreed to create 'a mechanism for ongoing discussions regarding economic and trade relations,' to be led by Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer, as outlined in the statement.

'These discussions may take place alternately in China, the United States, or a mutually agreed third country. Additionally, the two sides may hold working-level consultations on pertinent economic and trade matters as necessary,' it further stated.