China and US agree to lower tariffs in 90-day truce

In a major breakthrough, the United States and China have agreed to a temporary truce in their tariff war, slashing import duties for 90 days while broader negotiations continue. The move, finalised in Geneva, sees US tariffs on Chinese goods cut from up to 145% down to 30%, with China reciprocating by lowering duties on US goods from 125% to 10%.

This is the first major sign of cooperation following months of economic brinkmanship. The deal was hailed by both sides as “substantial progress”, with US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng leading the talks. President Trump called the outcome a “total reset” of bilateral trade relations.

Financial markets responded with enthusiasm. Global indices rallied, the dollar strengthened, gold prices retreated, and oil saw a strong uptick. The 90-day cooling period is expected to pave the way for more durable accords addressing underlying issues from technology access to regulatory transparency.

For now, the world watches as two economic giants pause their dispute, and markets breathe a collective sigh of relief.

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