News - World: China and the US have agreed to temporarily reduce reciprocal tariffs by 115% and end the trade war that threatened to send the world economy into recession and cause financial markets to collapse.

Speaking after talks with Chinese officials in Geneva, US Treasury Secretary Scott Bessent said on Monday that the two sides had agreed to a 90-day pause on reciprocal tariffs.

The combined 145% US tariff on Chinese imports will be reduced to 30%, including the rate tied to fentanyl, by May 14, while the 125% Chinese duties on US goods will drop to 10%.

“Both countries represented their national interest very well … We both have an interest in balanced trade, the US will continue moving towards that,” Bessent said.

“The consensus from both delegations this weekend is neither side wants a decoupling … And what had occurred with these very high tariffs ... was the equivalent of an embargo, and neither side wants that. We do want trade,” Bessent emphasized.

A spokesperson for China’s Ministry of Commerce has called the agreement “an important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

Following the announcement of the agreement, the dollar has risen against other major currencies, and markets have reversed their downward trend.

Since the agreement, the Nasdaq Composite has gained 3.6%, the Standard and Poor’s 500 (S&P 500) has increased by 2.8%, and the Dow Jones Industrial Average (Dow Jones) has risen by 2.3%. Elsewhere, the pan-European Stoxx 600 index has also increased by 0.7%.

The Geneva meetings were the first face-to-face interactions between senior Chinese and US economic officials since the US President Donald Trump returned to power and launched a global tariff war, especially imposing high duties on Chinese products.

After he came to office in January, Trump declared a national emergency over the US fentanyl crisis and imposed a 20% tariff on Chinese goods. He then followed the trade war with a 34% “reciprocal” duty on Chinese imports in April, and finally set the tariff at 145%. China, in return, put a 125% tariff on US goods.

The trade war almost pushed the world economy towards a recession and nearly brought global markets to collapse.

Source: Press TV