US and China agree to temporarily lower tariffs, set clock for negotiations

The US and China have agreed to temporarily reduce bilateral tariffs, opening a 90-day window for renewed trade negotiations aimed at de-escalating tensions.

In a joint statement issued in Geneva, both governments have committed to lowering tariffs on each other’s goods for a 90-day period. The move creates a crucial window to restart stalled negotiations and mitigate the broader economic fallout.

The US will reduce its cumulative 145% tariffs on most Chinese imports to 30%, including duties tied to fentanyl-linked goods, by suspending 24 percentage points imposed through recent executive orders.

Similarly, China will cut its 125% levies on US goods to 10%, eliminating additional tariffs introduced since April.

The agreement signals a shift in tone, with both sides emphasizing “mutual respect,” “continued communication,” and the goal of a “sustainable, long-term” economic relationship.

Importantly, the statement confirms that China will remove certain non-tariff countermeasures, such as licensing restrictions and administrative delays, that have hindered US exporters.

Negotiations will resume under a new bilateral framework led by He Lifeng, Vice Premier of China’s State Council, alongside US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. Talks may alternate between both countries or take place at neutral venues.

The positive development comes after President Trump said Saturday on Truth Social that US-China talks had made great progress during their meetings in Switzerland. He described the discussions as constructive and friendly, calling the outcome a total reset.

On Sunday, Bessent confirmed that both sides had made “substantial progress” and called the recent talks a “productive and focused effort” to reset bilateral economic relations.

Bitcoin briefly surged to $105,800 following tariff reduction news, before retreating below $105,000. At press time, the leading digital asset was trading at around $104,400, according to TradingView.

In traditional markets, spot gold extended its intraday decline to 3% as risk appetite returned. Meanwhile, US equity futures rallied, with S&P 500 futures up 2.5% and Nasdaq futures gaining 2%.

Despite the market reaction, the agreement does not represent a full resolution of US-China trade tensions. Officials have committed only to dialogue over the next three months, and the outcome remains uncertain. Any breakdown could quickly reverse current optimism.

This is a developing story.