The United States and China have reached a breakthrough in their escalating trade war, agreeing to a 90-day pause on tariffs that had sent prices soaring worldwide. The agreement, announced by U.S. Treasury Secretary Scott Bessent, includes mutual tariff reductions and a renewed commitment to work on fentanyl control and broader trade cooperation.
Under the deal, tariffs on many goods—previously as high as 145% for Chinese imports and 125% for U.S. products—will be slashed to between 10% and 30% during the truce period starting May 14. Both nations described the discussions in Geneva as “constructive,” and Chinese Vice Premier He Lifeng echoed optimism for a “positive path forward.”
The agreement is being seen as a crucial cooling-off moment after weeks of tariff tit-for-tat triggered by President Trump’s so-called “Liberation Day” policy, which imposed sweeping duties on trading partners. While key sanctions on Chinese fentanyl-related exports remain in place, the overall tone from both sides now points toward de-escalation.
According to a joint statement, the two economic giants plan to create a permanent framework for ongoing negotiations. “Neither side wants a decoupling,” said Bessent, while China’s Ministry of Commerce emphasized a future rooted in “mutual openness, cooperation, and respect.”
