The United States and China agreed on Monday to a 90-day truce in their intense trade war, marking a significant de-escalation of tensions that had affected the global economy.
As part of the agreement, both countries will substantially reduce their reciprocal tariffs, eliminating more than 100% in combined tariffs. Specifically, the United States will decrease its tariff on Chinese products from 145% to 30%, while China will reduce its tariff from 125% to just 10%.
The announcement triggered a strong rally in stock markets, reflecting global relief over the shift toward greater economic cooperation between the two largest world powers.
According to the United States Treasury Secretary, Scott Bessent, both delegations agreed that neither party desires an ''economic decoupling.'' ''What happened with those high tariffs was equivalent to an embargo, and neither country wants that. We want trade, and balanced trade,'' he stated.
Bessent expresó que ninguna de las partes quiere una desconexión económica
Meanwhile, the Chinese Ministry of Commerce indicated that it was agreed to cancel 91% of existing tariffs and suspend another 24% during the 90-day period, representing a total reduction of 115 percentage points.
The Chinese statement highlighted that this agreement benefits producers and consumers of both countries and responds to shared interests at both bilateral and global levels.
The talks took place in Geneva and marked the first face-to-face meeting between senior economic officials of both countries since President Donald Trump returned to power and reinstated a tariff policy against China last month.
Tanto Estados Unidos como China reducirán significativamente sus aranceles mutuos
Although the agreement represents a temporary détente, the full impact of the previous tariffs and trade sanctions imposed by both countries is still unclear.
Additionally, Bessent clarified that the pact doesn't address specific sectoral tariffs and that the United States will continue with its strategy of ''strategic readjustment'' in key sectors such as pharmaceuticals, semiconductors, and steel, where it has identified vulnerabilities in the supply chain.
