The United States and China announced Monday that they have agreed to a 90-day halt on escalating tariffs and will each reduce some of the duties imposed on one another.
As part of the agreement, the U.S. will lower its tariffs on Chinese goods to 30%, while China will reduce its tariffs on American imports to 10%. The announcement came in a rare joint statement following high-level trade negotiations over the weekend.
Speaking at a press conference, U.S. Treasury Secretary Scott Bessent said both sides agreed they did not want to pursue economic decoupling.
Further negotiations are scheduled, and both nations may hold technical-level discussions on key trade and economic matters.
The move was welcomed by investors, many of whom had feared the ongoing trade dispute could spiral into a broader global crisis, disrupting commerce and stoking uncertainty. U.S. stock futures rose sharply, building on gains already seen Sunday evening before the news broke.
Officials from both countries had previously signaled that the talks were yielding progress toward easing tensions between the world’s two largest economies. Leading up to the weekend’s discussions, President Donald Trump had hiked tariffs on Chinese goods to at least 145%, prompting Beijing to retaliate with duties of 125% on U.S. products.
While the reductions mark a significant shift, analysts note that current tariff levels remain well above those at the start of Trump’s second term. In addition to remaining U.S. tariffs on Chinese imports, a blanket 10% duty and separate levies on steel, aluminum, and automobiles continue to be enforced.
