Surprising US China trade agreement in Geneva
U.S.and China Agree to Significantly Reduce Tariffs on Each Other’s Goods for Initial 90-Day Period
According to a report by the International Economics Desk of Webangah News Agency, citing CNN, the U.S. and China agreed on monday to dramatically reduce tariffs on each other’s goods for an initial 90-day period.
The surprising agreement, announced in a joint statement, has eased tensions in the trade war between the world’s two largest economies and boosted global markets. The statement followed intensive multi-day negotiations in Geneva, Switzerland, where both sides described “notable progress.”
The statement emphasized that the U.S. and China “affirm the importance of maintaining stable, long-term economic and trade relations based on mutual benefit.”
The reciprocal tariff reductions will take effect before May 14. However, 20% U.S. tariffs imposed on China in February and March over fentanyl-related issues remain unchanged. both sides agreed to slash “reciprocal” tariffs by 115% for 90 days.
Under the agreement:
- The U.S. will temporarily lower its average tariffs on Chinese goods from 145% to 30%.
- China will reduce its tariffs on American imports from 125% to 10%.
Global investors welcomed the de-escalation of this trade war—triggered by former President Donald Trump’s heavy tariffs—which disrupted financial markets, supply chains, and fueled fears of a global recession.
Futures for the Dow Jones surged over 2%, S&P 500 futures rose nearly 3%, and Nasdaq composite futures climbed more then 3.5% during asian afternoon trading. Asian markets also rallied: Hong Kong’s Hang Seng Index gained roughly 3%. Meanwhile:
- The U.S dollar strengthened against major currencies while gold prices fell—a typical response to easing economic tensions.
so far, this trade war has significantly impacted both economies:
- The U.S GDP (a broad economic indicator) saw its first quarterly decline since early 2022 as importers rushed shipments ahead of tariff hikes.**
