President Donald Trump has come to an agreement with China to pause tariffs for a period of ninety days. After talks in Geneva, the U.S. Treasury Secretary Scott Bessent told the media that both sides had shown “great respect” in the negotiations.
“The consensus from both delegations this weekend was neither side wants a decoupling,” Bessent added.
A spokesperson for China’s ministry of commerce said that this move met the expectations of producers and consumers in both countries, as well as the interests of both nations and the common interest of the world. They added that they hope that the U.S., based on this meeting will continue to move forward in the same direction with China, completely correct the erroneous practice of unilateral tariff hikes, and continually strengthen mutually beneficial cooperation.
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The 90-day lowering of tariffs applies to the duties announced by Trump on April 2, which ultimately escalated to 125% on Chinese imports, with Beijing responding with equivalent measures.
William Xin, the chair of the hedge fund Spring Mountain Pu Jiang Investment Management, told Reuters: “The result far exceeds market expectations. Previously, the hope was just that the two sides can sit down to talk, and the market had been very fragile. Now, there’s more certainty. Both China stocks and the yuan will be in an upswing for a while.”
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For the U.S., the pause provides an opportunity to assess China’s trade practices and compliance with prior agreements. For China, the pause offers a chance to avoid further economic disruption while seeking more favorable terms in trade discussions. This truce also reduces uncertainty for businesses and global markets, providing temporary stability. However, both nations will need continued dialogue to address underlying issues and prevent a return to higher tariffs.