In a significant move toward easing global trade tensions, the United States and China announced today a joint agreement to roll back tariffs on each other’s goods for a 90-day period. The decision marks a critical de-escalation in a multi-year trade conflict that has disrupted global supply chains, rattled markets, and strained diplomatic ties.
The agreement was finalized following high-level negotiations between U.S. Treasury Secretary Lisa Cook and Chinese Vice Premier Liu He, held over the weekend in Geneva. According to officials from both countries, the temporary rollback will take effect immediately, suspending tariffs on over $200 billion worth of goods.
“This is an important first step toward restoring fairness and stability in the global economy,” said Secretary Cook in a press briefing Monday morning. “The 90-day rollback provides a window for both sides to work toward a broader and more durable trade framework.”
Chinese state media confirmed the move, hailing it as “a gesture of mutual respect and constructive engagement.” Vice Premier Liu emphasized that China remains committed to a cooperative relationship that supports “balanced trade and sustainable economic growth.”
Markets reacted positively to the news. The S&P 500 and Shanghai Composite both opened sharply higher, and analysts expect the temporary easing of tariffs to alleviate inflationary pressures, particularly on industrial materials and consumer electronics.
The suspension includes tariffs on American agricultural products, semiconductors, and electric vehicles, as well as Chinese steel, machinery, and consumer goods. Officials noted that enforcement mechanisms and the potential for permanent tariff reductions will be negotiated during the 90-day period.
Though some trade hawks in both countries have voiced skepticism, citing past breakdowns in talks, international observers welcomed the deal as a rare moment of consensus between the world’s two largest economies.
Kristalina Georgieva, Managing Director of the International Monetary Fund, applauded the agreement, saying, “The global economy stands to benefit from reduced trade barriers and renewed cooperation. We encourage both nations to build on this momentum.”
As the clock begins ticking on the 90-day timeline, both sides face pressure to turn the pause into lasting progress. Negotiators are expected to meet again in late June for further talks.