The United States and China have agreed to a 90-day pause in their escalating trade war, marking a rare moment of cooperation between the two global economic giants. As part of the temporary deal, the U.S. has slashed tariffs on Chinese goods from 145% to 30%, while China reciprocated by cutting duties on American imports from 125% to 10%. The agreement, reached after intense negotiations in Geneva, has been welcomed by markets worldwide, sparking rallies across major stock indices and lifting oil prices.
While this development brings short-term relief to industries and investors caught in the crossfire of tariff hikes, economists warn that it’s a bandage on a much deeper wound. The core disputes, ranging, from intellectual property concerns to trade imbalances and technological dominance, remain unresolved. Many analysts view this as a window of opportunity for both sides to engage in more meaningful negotiations that could lay the groundwork for a long-term solution.
Politically, the move signals a potential shift in tone from the Trump administration, which has largely favored confrontation over compromise in its trade dealings with China. Facing domestic economic pressures and criticism from affected industries, the administration appears open to a diplomatic detour, at least for now. On China’s side, the tariff cuts may be strategic, offering temporary concessions while it seeks to safeguard its long-term economic interests.
