US, China agree to drastically roll back tariffs in major trade breakthrough

The United States and China have agreed to drastically roll back tariffs on each other’s goods for an initial 90-day period, according to a joint statement released by the two countries Monday, in a surprise breakthrough that has buoyed global markets.

The announcement comes after a weekend of marathon trade negotiations in Geneva, Switzerland by officials from the world’s two largest economies.

The US will temporarily lower its tariffs on Chinese goods from 145% to 30%, while China will cut its levies on American imports from 125% to 10%, according to the joint statement.

The two sides also agreed to establish “a mechanism to continue discussions about economic and trade relations,” led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, according to the statement.

“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues,” it added.

(CNN)