China and the US have agreed to temporarily reduce reciprocal tariffs by 115% and end the trade war that threatened to send the world economy into recession and cause financial markets to collapse.
Speaking after talks with Chinese officials in Geneva, US Treasury Secretary Scott Bessent said on Monday that the two sides had agreed to a 90-day pause on reciprocal tariffs.
The combined 145% US tariff on Chinese imports will be reduced to 30%, including the rate tied to fentanyl, by May 14, while the 125% Chinese duties on US goods will drop to 10%.
“Both countries represented their national interest very well … We both have an interest in balanced trade, the US will continue moving towards that,” Bessent said.
“The consensus from both delegations this weekend is neither side wants a decoupling … And what had occurred with these very high tariffs ... was the equivalent of an embargo, and neither side wants that. We do want trade,” Bessent emphasized.