US and China De-escalate Trade War: 90-Day Tariff Reduction Agreement

US and China Reach Breakthrough Agreement to Ease Trade War Tensions The United States and China have reached a significant agreement to temporarily ease tensions in their ongoing trade war. Both countries have agreed to sharply reduce tariffs for a period of 90 days, marking a potential turning point in their strained economic relationship. This development follows months of escalating tariffs, with the U.S. imposing a 145% tariff on Chinese goods and China retaliating with a 125% tariff on American products. The agreement signals a willingness from both sides to de-escalate the conflict and resume more balanced trade. Treasury Secretary Scott Bessent, speaking in Geneva, stated that "both sides want to continue trading and are committed to more balanced trade." This sentiment suggests a potential shift toward cooperation and a desire to resolve the trade disputes through negotiation rather than further escalation. The reduced tariffs are expected to provide significant relief to many U.S. companies that had previously suspended orders from China due to the high tariff rates. The easing of trade restrictions is likely to boost economic activity and improve the flow of goods between the two nations. This development also comes as the U.S. President prepares for his first major overseas trip, with planned stops in Saudi Arabia, Qatar, and the UAE. The timing of the agreement could indicate a broader strategic shift in U.S. foreign policy and its approach to international trade relations.