U.S. and China to Slash Tariffs for 90 Days

Temporary truce aims to ease trade war tension as new negotiations begin.

U.S. Secretary of the Treasury, Scott Bessent (treasury.gov)

The United States and China have agreed to dramatically reduce tariffs for the next 90 days, signaling a temporary pause in their high-stakes trade war. The move, announced after talks in Geneva over the weekend, will slash U.S. tariffs on Chinese goods from 145% to 30% and Chinese tariffs on U.S. goods from 125% to 10%. (AP)

“This is just a pause,” Treasury Secretary Scott Bessent said. Recently, both Bessent and President Trump have stated that tariffs on China had ballooned to an unsustainable rate, and that something had to change. (CNN)

Bessent emphasized that both sides want to avoid further economic fragmentation. “What had occurred with these very high tariffs... was the equivalent of an embargo,” he said. “Neither side wants that. We do want trade.” The 90-day pause is meant to give both nations room to negotiate a more permanent agreement without the pressure of escalating penalties. (BBC)

U.S. business leaders, who had warned of supply chain chaos and rising consumer prices, welcomed the development. But some warned the deal still leaves tariffs far above pre-2025 levels and does little to resolve underlying disputes.

The pause will remain in place until August 12, with both sides pledging not to raise tariffs during that time.

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Inside the Talks: What’s Driving the Deal

👉 In today’s Pro Brief, we break down how the tariff deal came together, how markets are reacting, and what signals the U.S. and China are sending about the road ahead.