The United States and China have reached a short-term agreement to reduce the high taxes (tariffs) they had placed on each other’s imported goods. For the next 90 days, both countries will cut their tariffs significantly, aiming to ease tensions and boost trade.
US Treasury Secretary Scott Bessent confirmed the deal after a weekend of trade talks held in Switzerland. He called the discussions “productive and constructive,” marking a positive step forward after months of trade conflict between the two economic giants.
Earlier this year, US President Donald Trump imposed a steep 145% tariff on Chinese products entering the US. In response, China added a 125% tariff on some American goods. These sharp increases created uncertainty in global markets and raised fears about a possible worldwide economic slowdown.
Now, under the new agreement, the US will reduce its tariff on Chinese imports to 30%, and China will lower its tariff on US goods to 10% for 90 days. This temporary relief is expected to calm markets and give both countries time to work on a more permanent trade solution. The move is seen as a step toward improving economic cooperation between the world’s two largest economies.
