The US and China have agreed to cut reciprocal tariffs for 90 days.
US Treasury Secretary Scott Bessent announced the compromise this morning, at the end of US-China trade talks in Geneva, Switzerland.
He said there would be a “90-day pause” which would see both nations “substantially move down the tariff levels.”
The US and China were on collision course for a trade war when President Trump announced 145% reciprocal tariffs on goods from China at the beginning of last month. In response, China slapped US goods with 125% tariffs and also started to squeeze supply of vital rare-earth minerals and magnets, the global supply of which China dominates.
“Both countries represented their national interest very well,” Bessent said of the talks.
“We both have an interest in balanced trade, the U.S. will continue moving towards that.”