Tariff tensions ease as U.S., China cut deal

The United States and China have agreed to roll back some of the steep tariffs they placed on each other’s goods, giving both sides 90 days to cool tensions and continue negotiations.

Under the deal, U.S. tariffs on Chinese imports will drop from 145% to 30%, while China will cut its own tariffs on American goods from 125% to 10%. The change takes effect Wednesday and follows a weekend of intense talks in Geneva between trade officials from both countries.

President Donald Trump’s 20% fentanyl-related tariff will stay in place, but most of the broader trade war measures will be temporarily relaxed.

Treasury Secretary Scott Bessent said both sides wanted to get back to doing business.

“The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs…was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade,” Bessent said.

The agreement was unexpected. A week ago, Bessent said the goal was simply to “de-escalate,” not reach any big breakthrough.

Chinese officials also shifted their tone, calling the agreement good for both countries.

Read more: U.S., China reach deal to roll back tariffs after marathon talks

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