US and China Agree to 90-Day Tariff Reduction Amid Trade Tensions

Tone & Political Bias: Center

Why: The article presents a straightforward summary with official figures and viewpoints from both sides without any ideological framing or partisan emphasis.

United States Department of the Treasury, Public domain, via Wikimedia Commons

90-Day Tariff Cut Agreement

The United States and China have agreed to a temporary reduction in tariffs for 90 days in an effort to ease trade tensions. Under this deal, the US will reduce tariffs on Chinese goods from 145% to 30%, and China will cut its tariffs on US imports from 125% to 10%.

This decision came after high-level negotiations in Geneva and is expected to provide a short-term window for more detailed discussions on a long-term trade strategy.

Stock Market Reaction

Financial markets responded positively to the news. The Dow Jones Industrial Average surged by over 950 points, and the S&P 500 and Nasdaq also posted notable gains. Oil prices climbed more than 3%, and the US dollar strengthened following the announcement.

New Dialogue Mechanism

Both countries also agreed to establish a permanent consultation framework to prevent further economic escalations. Meetings under this mechanism will rotate between the US, China, or a third neutral country. The US team is led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while China is represented by Vice Premier He Lifeng.

Fentanyl-Related Measures Discussed

In a new addition to trade talks, the two sides addressed the issue of fentanyl. The US requested that China take concrete actions to prevent the production and export of fentanyl-related chemicals. While no binding agreement was signed on this issue, both parties acknowledged its importance.

Challenges Remain

Despite the tariff relief, several tariffs remain in place. A 20% tariff related to fentanyl remains on select Chinese goods. Additionally, duties on automobiles, aluminum, and steel have not been lifted.

Experts warn that this deal is a short-term fix. Fundamental disagreements between the two economies still exist, and significant negotiations will be required beyond the 90-day period to address them.