GENEVA, May 12 (NNN-AGENCIES) — The United States and China have agreed to temporarily slash their tit-for-tat tariffs, with the US rate down to 30 percent and Chinese duties cut to 10 percent, the US trade chief said Monday.
Following a weekend of trade talks in Geneva, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer told reporters the sides had agreed to temporarily roll back “reciprocal tariffs” by 115 percentage points for a 90 day period.
The United States will reduce tariffs on most Chinese goods from 145% to 30% for a 90-day period, while China will lower its levies on American imports from 125% to 10%, reports say, marking a significant step in de-escalating the ongoing trade war.
The tariff cuts, which include sensitive sectors such as products linked to fentanyl, are part of a temporary mutual agreement aimed at providing breathing room for exporters and calming global markets as both nations pursue deeper negotiations.
Treasury Secretary Scott Bessent emphasized that neither the U.S. nor China want to pursue economic decoupling, as both sides announced key steps to ease tensions.
The U.S. will suspend 24 percentage points of the April 2 tariffs for 90 days, providing temporary relief for importers. Meanwhile, China reiterated its commitment to the stability of Sino-U.S. relations, stressing that threats are never the right approach to dealing with Beijing. In a newly released white paper, China asserted it is fully capable of handling the impact of U.S. tariffs and reaffirmed that it has always approached its relationship with the U.S. on the basis of mutual respect.
Stock markets responded swiftly to the reports of the Geneva breakthrough. S&P 500 futures gained between 1.1% and 1.4%, while Nasdaq futures rose by 1.4% to 1.9% in early trading. These moves reflect investor relief and optimism over the potential thaw in relations between the world’s two largest economies. However, the reported market gains fell short of some earlier speculation, with most sources citing increases within the 1–2% range, rather than the more aggressive 2.5% to 3.1% rises mentioned in some quarters.
“The talks have provided a necessary reprieve,” analysts noted, but added that the 90-day window underscores the provisional nature of the agreement. Market sentiment remains cautiously optimistic, with hopes that the tariff rollback will prevent further economic damage while the two sides iron out a more permanent deal.
The Geneva talks, which included Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng, ended Sunday with both sides hailing “substantial progress.” While neither side formally confirmed a final deal, the reported tariff cuts suggest significant movement toward de-escalation.
The White House is expected to release more details Monday through a joint statement, which markets will scrutinize closely for clarity on next steps. — NNN-AGENCIES
