In a surprising move to ease rising trade tensions, the United States and China have agreed to significantly reduce tariffs on each other’s goods, as reported by NDTV. The joint announcement, made in Geneva, signals a cautious step toward cooperation between the world’s two largest economies.
Starting May 14, the U.S. will cut its steep tariffs on most Chinese imports from 145% to 30%, including those linked to fentanyl-related products. In return, China will lower its 125% duties on American goods to 10%. Officials described the decision as a temporary measure to allow three more months for negotiations and to cool economic tensions.
“This was a productive dialogue,” said U.S. Treasury Secretary Scott Bessent. “We both agree that decoupling is not the goal.”
The two sides also agreed to set up a mechanism for ongoing talks on trade and economic issues. While not a full trade agreement, the development marks a hopeful shift in a dispute that has slowed commerce and shaken global markets. Just weeks ago, tensions were high after President Trump’s announcement of new tariffs on April 2, but recent progress has brought relief to investors and lifted Chinese stock markets.
Trade Representative Jamieson Greer emphasized the need for more balanced trade with China. However, key issues remain unresolved, and past attempts at similar deals have failed to bring lasting results.
Experts warn that despite signs of progress, crafting a full agreement will take time and patience. History shows that such truces can quickly unravel—but for now, both nations seem willing to talk instead of fight.
