US and China Agree to 90-Day Trade War Truce

Geneva Trade Talks Yield 90-Day Truce: US and China Slash Tariffs The ongoing trade war between the United States and China took a surprising turn on Monday with the announcement of a 90-day pause in hostilities. The agreement, reached after weekend talks in Geneva, Switzerland, will see both nations significantly reduce reciprocal tariffs. U.S. Treasury Secretary Scott Bessent stated, "Both sides have reached an agreement on a 90-day pause and substantially move down the tariff levels." This represents a major breakthrough in negotiations that have strained relations between the world's two largest economies for months. The specifics of the tariff reductions remain somewhat vague; however, the announcement has sent shockwaves through global markets, with stocks soaring on the news. The 90-day period is intended to allow for further negotiations and a potential resolution of the broader trade disputes. Adding to the significance of this development, President Trump is scheduled to embark on a Middle East trip this week, with a stated focus on securing additional trade deals. This suggests a broader strategic shift towards prioritizing economic diplomacy. While the long-term implications of this 90-day truce remain uncertain, the immediate reaction from financial markets indicates a significant level of optimism. The agreement offers a glimmer of hope for de-escalation and a potential path towards a more stable global economic landscape.