#TradeWarEases China and the United States reach an agreement for a 90-day tariff reduction.

Washington will reduce trade tariffs on Chinese products from 145% to 30%. Beijing will do so from 125% to 10%.

China and the United States have just sealed a 90-day truce in the trade war, easing tensions between the two global superpowers. Following a high-level meeting held this weekend in Geneva (Switzerland), Washington and Beijing have decided to significantly cut the mutual tariffs that had been imposed.

The consensus of both delegations this weekend is that neither party desires a decoupling (...) And what happened with these high tariffs was an embargo, equivalent to an embargo. And neither party desires that. We do want trade,” Bessent stated.

“We want a more balanced trade. And I believe both parties are committed to achieving that,” he added.

The announcement comes after delegations from both countries, escorted by the city and guarded by numerous Swiss police, met for at least twelve hours, between Saturday and Sunday, in a sunny 17th-century villa that serves as the official residence of the Swiss ambassador to the United Nations in Geneva.

Fears of a recession ease

Stock markets rose sharply following the retreat of the two main economic powers in the world in a confrontation that has destabilized the global economy.

The dollar also strengthened following the news, which helped dispel concerns about the recession caused last month by the escalation of tariff measures by U.S. President Donald Trump, aimed at reducing his country's trade deficit, as assured.