🔁 U.S. and China Roll Back Tariffs, Agree to 90-Day Truce

In a rare moment of de-escalation between the world’s two largest economies, the United States and China have agreed to a 90-day truce in their intensifying trade war, easing tensions that have rattled global markets and alarmed businesses worldwide 🌍.

Announced Monday morning in Geneva, the deal includes a major rollback in tariffs — a combined 115 percentage point reduction — and a commitment to continue negotiations during the three-month pause. U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent led the American delegation, while China’s Commerce Ministry described the deal as a “foundation for further cooperation.”

📉 From Trade War to Trade Pause

Just weeks ago, the two nations appeared on the brink of a full-scale economic standoff, slapping tit-for-tat tariffs that reached a staggering 145% on Chinese goods entering the U.S. and 125% on American goods sent to China. That level of trade barrier, Bessent warned, was the “equivalent of an embargo.”

But over the weekend, inside a lakeside 17th-century Swiss villa guarded by heavy police presence, the tone shifted. Delegates huddled for marathon sessions, occasionally retreating to outdoor sofas with a view of Lake Geneva — and slowly, a consensus emerged.

The result: both nations agreed to cancel 91% of their mutual tariffs and suspend another 24% for the 90-day period, offering breathing room to restart talks and explore deeper solutions.

📊 Markets Soar, But Caution Remains

Investors wasted no time reacting. Futures for the S&P 500 surged 2.6%, while the Dow Jones Industrial Average rose by 2%. Oil prices jumped over $1.60 a barrel, and the dollar strengthened against both the euro and the yen 💹.

International markets joined the rally, with Hong Kong’s Hang Seng Index climbing nearly 3%, and European benchmarks in Germany and France ticking up 0.7%.

Indeed, Dani Rodrik, a Harvard economist, was more scathing. He called the truce a superficial fix that leaves key issues unresolved and burdening U.S. consumers with continued high tariffs.

🧠 Beyond the Headlines: What’s at Stake?

The temporary rollback still leaves 30% tariffs on Chinese imports, which analysts say will continue to dampen trade and investment. And the long-standing issues — from intellectual property disputes to China’s export controls on rare earths — remain.

Just last month, China added multiple U.S. companies to its “unreliable entities” list, further escalating tensions. The new truce includes a suspension of those retaliatory measures, though Chinese officials stressed the U.S. must end its “unilateral tariff hikes” permanently to restore long-term stability.

🔮 What’s Next?

Bessent confirmed that another high-level summit is planned in the coming weeks to continue talks. But trade watchers warn that both sides have clashed repeatedly in the past — and this detente could collapse without meaningful progress.

For now, global markets and business leaders are exhaling. But the real test will come over the next 90 days: can two deeply divided powers turn a truce into a treaty?